Monday 9 February 2015

Currency Manipulation the Biggest Issue in G20 Meeting



A US official attending the G20 Summit of Finance Chiefs in Istanbul warned that some countries are manipulating their currencies to gain a competitive edge. 



According to the US official, they have seen signs that there is currency manipulation happening. He said it was not an abstract possibility but a “real element of the current reality.”

A group of US Lawmakers are expected to unveil legislation on Tuesday aimed to halt the exchange rate manipulation against their trading partners. The legislation will treat currency undervaluation as foreign government subsidies. It would also allow US companies to seek compensatory duties for imported goods.

Senators are urging legislation to crack down currency manipulation completely. They are citing a Peterson Institute study that argues US workers are the ones to pay the price for currency interventions by foreign governments

Meanwhile, US automakers, the United Auto Workers and the AFL-CIO made the issue a top priority. They are expected to lobby against the Obama administration to include currency provisions and they hope to influence legislation to negotiate a free trade deal to get a vote from congress.