World Ch. Schedule : TUE 22:30 KST
* Date : 2017-02-11
After withdrawing from the TPP and vowing to renegotiate NAFTA, U.S. President Donald Trump turned his attention to the currency front. He stepped up criticism against the currency policies of China and Japan. His head of the National Trade Council also accused Germany of using a "grossly undervalued" euro to exploit the U.S. Washington has in effect accused the three countries of being currency manipulators. All three countries have refuted these claims, but it has created greater uncertainty in the foreign exchange market, adding more jitters to the global economy.
The U.S. Treasury Department developed several criteria to assess its trade partners' currency practices. Meeting all criteria would mean that country would likely be labeled a currency manipulator. Out of the three thresholds, Korea meets two, having a large trade surplus with the U.S. and a sizable current account surplus in relation to its GDP. The Korean won is already facing extreme volatility this year, and talk of potential currency fluctuations has local exporters on their toes. We sit down to discuss the ongoing currency debate and examine the possibility of Korea being labeled a currency manipulator.