Trump administration may seek NAFTA currency provision: Mnuchin

White House Reuters

Treasury Secretary Steven Mnuchin (2017 CQ-Roll Call, Inc.)

U.S. Treasury Secretary Steven Mnuchin said on Thursday the Trump administration may seek a provision to deter currency manipulation in the North American Free Trade Agreement as part of its planning for future free trade deals.

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Mnuchin, testifying before the House Financial Services Committee, said that currency manipulation by U.S. trading partners needs to be met with an impact, "and not just talk."

He said that a proposal from the Peterson Institute for International Economics for the Treasury to engage in countervailing currency interventions -- essentially buying the currency of a country that is deliberately trying to suppress it -- could be one of many such possibilities. But Mnuchin added that the scale of such operations could be prohibitively large. 

(Reporting by David Lawder; Editing by Phil Berlowitz)

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