US keeps South Korea on monetary practices watch list
WASHINGTON, 03 Dec. (Yonhap) – The United States on Friday said it kept South Korea on its list of countries to watch for monetary practices.
The US Treasury Department named 11 other countries, including China and Japan, on the watch list in its biannual report to Congress.
He said, however, that neither country deliberately intervened in foreign exchange markets for unfair gains.
“In accordance with the 2015 law, the Treasury has also established a watch list of major trading partners that deserve special attention to their monetary practices and macroeconomic policies,” the report said, referring to the Trade Facilitation Law. exchanges and the application of the laws of 2015.
“In this report, the watch list includes China, Japan, Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, Mexico and Switzerland. All except Switzerland were on the watchlist in the April 2021 report. Added.
Under the 2015 law, countries that meet two of the three criteria are placed on the watch list.
The three criteria are; a bilateral trade surplus of over $ 15 billion with the United States, a large current account surplus of over 3% of gross domestic product (GDP), and persistent unilateral intervention in the currency market for at least eight months out of twelve with net purchases of over 2% of GDP savings over a 12-month period.
South Korea has met the first two of the three criteria, according to the Treasury Department.
The report says Taiwan and Vietnam exceeded the thresholds for all three criteria during the 12-month period ending in June, prompting the United States to improve its analyzes of its monetary practices and economic policies. , as well as bilateral engagement with countries to address their concerns.
Yet the report states that the United States determined that “none of these economies intervened in foreign exchange markets in the four quarters through June 2021 to prevent an effective balance of payments adjustment or to to gain an unfair competitive advantage in commerce “.