ABSTRACT

Currency Manipulation and Countervailing Duties [Updated February 13, 2020]   [open pdf - 749KB]

From the Document: "For more than a decade, some policymakers and analysts have expressed concerns that U.S. exports and jobs have been harmed by unfair exchange rate policies of other countries ('currency manipulation'). They argue that other countries have purposefully weakened their currency relative to the dollar to boost exports, at the expense of U.S. firms and workers. However, there are a number of factors that drive exchange rates, and it is difficult to estimate the extent to which a currency is undervalued, and why it is undervalued. The United States currently combats currency manipulation with unilateral and multilateral tools. Under U.S. law, the Treasury Department produces a semiannual report on exchange rate policies in other countries and, in specified instances, must initiate action against countries engaged in currency manipulation. The United States also addresses currency manipulation through the G-7 and the G-20, multilateral forums where major economies discuss and coordinate economic policies. The United States is also a member of the International Monetary Fund (IMF), an international organization through which countries have committed to refrain from currency manipulation, although there are questions about the IMF's ability to enforce currency commitments."

Report Number:
CRS Insight, IN11138
Author:
Publisher:
Date:
2020-02-13
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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