Arab and international
Economy News _ Baghdad
The International Monetary Fund (IMF) said that the US dollar is above its real value of 6% to 12%, based on the fundamentals of the economy in the near term, unlike the euro, the yen and the yuan.
The IMF rejects US President Donald Trump’s use of customs duties to resolve trade imbalances, but his assessment of the dollar as being above its real value is likely to give additional ammunition to Trump in his repeated complaint that the strength of the dollar hampers US exports.
Trump criticizes European and Chinese policies, which he says are leading to a devaluation of the euro and other currencies against the dollar.
An IMF annual report on currencies, surpluses and external deficits of major economies shows that current account surpluses remain concentrated in the euro area and other advanced economies such as Singapore, while the deficit remains largely in the US, UK and some emerging market economies.
The IMF, which warned that the US-China trade war could cost the world economy about $ 455 billion next year, said recent trade policy measures weighed on global trade flows, undermined confidence and disrupted investment, but failed to tackle external imbalances so far. .
Instead of exchanging tariffs, surplus and deficit countries, according to the IMF, should revive liberalization efforts and strengthen the multilateral trading rules regime, which has been in force for 75 years.