Views Article – Sharenet Wealth

Forex, News

Mnuchin sees no changes to use of U.S. exchange fund

CHANTILLY, France, July 18 (Reuters) – U.S. Treasury Secretary Steven Mnuchin said on Thursday that there have been no changes to policies on the Treasury’s $94.5 billion Exchange Stabilization Fund despite President Donald Trump’s desire for a weaker U.S. currency.

Mnuchin declined to comment on the dollar’s current valuation both in a Reuters interview and during a news conference at a G7 finance ministers meeting in France.

But he told Reuters that the main purpose of the exchange fund, created during the 1930s Great Depression, is to help minimize “distress on certain currencies as a result of market forces” or other pressures.

Typically, the fund has been used in times of policy coordination with other countries, he added.

“That’s the main purpose of the fund,” Mnuchin said. “On an ongoing basis we always look at what the fund can be used for in different alternatives, but as of now there is no change in policy,” Mnuchin said. (Reporting by David Lawder Editing by Chizu Nomiyama)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )