3/30/2017, 4:15 PM (Source: TeleTrader)
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Trump reportedly mulling penalties for FX manipulation

Several United States government agencies are working on measures that are short of labeling trade partners currency manipulators, aiming to deal with countries such as China, CNBC reported on Thursday, quoting unnamed sources. The world's most populated nation was in the crosshairs of President Donald Trump during the election campaign, but he hasn't yet fulfilled the promise to opt for such a strict move.

The Department of the Treasury is due to produce a report mid-year to compare trade and current account surpluses as well as foreign investment of overseas partners to levels indicating what the commander-in-chief sees as unfair trade. In the meantime, bodies including the Department of Commerce, National Economic Council, National Trade Council and the Office of the US Trade Representative are looking at alternative penalties, the article said.

One of the regulations at hand is the Trade Enforcement and Trade Facilitation Act, said a source familiar with the matter. The legislation, rolled out as the administration of President Barack Obama was ending its mandate, includes options like preventing the government from signing trade agreements with countries seen as currency manipulators, and elevating cases to the International Monetary Fund for evaluations and probes, the report notes.

Baha Breaking News (BBN) / IT