"Report Delayed Due to Shutdown"


ING's Outlook on US Treasury Currency Report Assessment Criteria.
Source: ING.


(Seoul=Yonhap Infomax) Sung Jin Kim – The US Treasury Department is expected to maintain South Korea and eight other countries on its semiannual currency monitoring list, according to a recent outlook.


Francesco Pesole, FX Strategist at ING, stated in a report on the 25th (local time) that no country is likely to be designated as a currency manipulator in the upcoming Fall 2024 US Treasury currency report, consistent with previous reports. He expects South Korea, China, Japan, Singapore, Taiwan, Vietnam, Germany, Ireland, and Switzerland to remain on the monitoring list.


Pesole noted that South Korea is projected to exceed the US Treasury's thresholds in two areas: its trade surplus with the US ($52 billion) and its current account surplus as a percentage of GDP (5.8%).


The US Treasury applies three criteria for its assessment:

  • • A bilateral trade surplus with the US of at least $15 billion in goods and services
  • • A current account surplus exceeding 3% of GDP
  • • Net purchases of foreign currency exceeding 2% of GDP over at least 8 months within a 12-month period

Pesole also predicted that Thailand will likely be added to the monitoring list, as its current account surplus stands at 3.6% of GDP, surpassing the threshold.


He added that the release of the Fall currency report has been delayed due to the US federal government shutdown, but it is expected to be published within the next few weeks.


The Treasury's previous semiannual currency report was released on June 5, 2024, while last year's second-half report was published on November 14, 2023.


sjkim@yna.co.kr


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