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.
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