The U.S. To Discuss Currency Valuations and External Imbalances with Taiwan

The United States is set to hold talks with Taiwan over currency valuations and external imbalances, the WSJ reported.

• The Treasury determined that there is “insufficient evidence” to make a finding that Vietnam, Switzerland, or Taiwan manipulates its exchange rate.
• The department said it will continue talks with the countries which were designated as currency manipulators under the Trump administration in January.
• The latest designations came in the Treasury’s semiannual report first issued under Treasury Secretary Janet Yellen.
• Traditionally, the report has been used as a diplomatic tool to look into countries that have been deemed to supposedly artificially weaken their currencies to boost domestic business versus foreign competitors.
• The designation is largely symbolic, and U.S. law requires the administration to initiate consultations with designated nations. No immediate penalties are imposed.
• Yellen said the Treasury is working to address efforts by foreign economies to “manipulate” their currency values which effectively put American workers at a disadvantage.