NewKerala.com

Key Points

South Korea has committed to deepening communication with the United States regarding foreign exchange policies after being reinstated on the US Treasury's monitoring list. The two countries are working towards a comprehensive agreement covering trade, economic security, and currency issues before a July 8 deadline. Ongoing diplomatic discussions between financial officials aim to strengthen bilateral understanding and trust. The monitoring list includes key trading partners like South Korea, China, Japan, and others, reflecting complex international economic relationships.

Key Points: South Korea Pledges US Forex Talks Amid Monitoring List Return

  • South Korea reinstated on US currency monitoring list
  • Bilateral talks aim for comprehensive agreement by July 8
  • Discussions focus on trade, economic security, and currency policy
  • Deputy ministers engage in direct diplomatic exchanges
2 min read

South Korea vows closer talks with US on forex policy decision

Seoul commits to enhancing communication with US Treasury on currency policies amid trade and economic cooperation negotiations

"We will continue to expand mutual understanding and trust regarding exchange rate policies - South Korean Finance Ministry"

Seoul, June 6

The finance ministry here vowed on Friday to enhance communications with the United States to strengthen mutual understanding and trust regarding foreign exchange rate policies.

The pledge came after the U.S. Treasury Department kept South Korea on its monitoring list for currency practices. Seoul was reinstated on the list in November 2024 after being removed in November 2023 for the first time since April 2016.

"We will continue to expand mutual understanding and trust regarding exchange rate policies through regular communication with the U.S. Treasury Department," the ministry said in a press release, reports Yonhap news agency.

"Ongoing discussions between the Korean and U.S. financial authorities on exchange rate issues will also be conducted thoroughly," it added.

Currency policy has been one of the key topics in bilateral negotiations related to U.S. President Donald Trump's administration's sweeping tariff measures.

In April, the two countries agreed to focus their talks on four categories -- tariff and non-tariff measures, economic security, investment cooperation and currency policy. They aim to reach a "package" agreement by July 8, when the 90-day suspension of Washington's tariff implementation is set to expire.

Last month, South Korea's Deputy Finance Minister Choi Ji-young met with U.S. Treasury Assistant Secretary for International Finance Robert Kaproth on the sidelines of the 58th Asian Development Bank (ADB) Annual Meeting in Milan to discuss currency-related issues.

Meanwhile, the US department released the updated "monitoring list" in the semiannual "Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States." South Korea was put back on the list in November last year after it was excluded in November 2023 for the first time since April 2016.

The latest monitoring list comprises South Korea, China, Japan, Taiwan, Singapore, Vietnam, Germany, Ireland and Switzerland. All except Ireland and Switzerland were on the list in the November 2024 report.

The report ascribed South Korea's inclusion on the list to its bilateral trade surplus and material current account surplus.

—IANS

- IANS

Share this article:

Reader Comments

R
Rahul K.
Interesting to see South Korea's approach to forex policy with the US. India could learn from their diplomatic handling of such sensitive economic matters. Our RBI also faces similar challenges with dollar-rupee fluctuations. More transparency would benefit everyone!
P
Priya M.
Why is India not on this monitoring list despite being a major trading partner? 🤔 Does this mean our forex policies are more balanced or are we just not significant enough for the US to monitor? Makes you think about our economic standing globally.
A
Arjun S.
South Korea's situation shows how smaller economies have to constantly adjust to US policies. India must strengthen its position through BRICS and other alliances to reduce dollar dependency. Atmanirbhar Bharat should include financial independence too!
S
Sunita P.
The back-and-forth with South Korea being added and removed from the monitoring list shows how arbitrary these US decisions can be. Hope our finance ministry is watching closely - we don't want sudden surprises affecting our exports and imports.
V
Vikram J.
While the article focuses on US-SK relations, the inclusion of China in the monitoring list is more concerning for India. Any US action against China's currency practices could have ripple effects on our economy too. Complex situation!
N
Neha R.
The July 8 deadline mentioned in the article is crucial. India should observe how these negotiations conclude - it might set precedents for future trade talks we have with America. Our IT and pharma sectors could be next in line for such scrutiny.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50