United States calls Switzerland, Vietnam currency manipulators in Donald Trump Trade Shot

Vastavam web: The Trump administration labeled Switzerland and Vietnam currency manipulators on Wednesday, in another parting shot at trading partners that could complicate matters for U.S. President-elect Joe Biden’s incoming team. In a long-overdue report, the U.S. Treasury also added India, Thailand and Taiwan to a list of trading partners it says may be deliberately devaluing their currencies against the dollar.

The COVID-19 pandemic has skewed trade flows and widened U.S. deficits with trading partners, an irritant to outgoing President Donald Trump, who won office four years ago partly on a promise to close the U.S. trade gap. In a long-overdue report, the U.S. Treasury also added India, Thailand and Taiwan to a list of trading partners it says may be deliberately devaluing their currencies against the dollar. The COVID-19 pandemic has skewed trade flows and widened U.S. deficits with trading partners, an irritant to outgoing President Donald Trump, who won office four years ago partly on a promise to close the U.S. trade gap.

Vietnam’s central bank said it would work with U.S. authorities to ensure a “harmonious and fair” trade relationship. “Vietnam’s foreign exchange rate policy has for years been managed in a way to contain inflation, ensure macro stability and not to create unfair trade advantage,” the State Bank of Vietnam said in a statement. The manipulator labels will ramp up pressure on Biden before he takes over, Per Hammered, chief emerging markets strategist at SEB in Stockholm, said. “You set the agenda and force him (Biden) into positions that he will have to get out of somehow,” Hammered said.

Source: Reuters