Archive for April 16th, 2017

Notes From Underground: Treasury Takes a softer Approach to Global Monetary Affairs

April 16, 2017

On Friday April 14 Treasury released a report that deemed no major trading a currency manipulator but five countries have met two of the three criteria and therefore will be closely monitored. This report is very well laid out but it is not incendiary as it seeks to persuade with a very soft touch. The three criteria of meeting of being a “manipulator” are:

      1. A significant bilateral trade surplus with the U.S.of a least $20 billion;
      2. S current account surplus is at least 3% of a nations GDP; and
      3. Persistent, one-sided intervention occurs when net purchases of foreign currency are conducted repeatedly and total at least 2% of a nation’s GDP in a 12-month period.

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