The International Monetary Fund (IMF) said on Wednesday that the US dollar is estimated to be above its real value of 6 to 12 percent, based on fundamentals of the economy in the near term, while the euro, Japanese yen and yuan levels are in line with fundamentals.
The IMF rejects US President Donald Trump's use of tariffs to resolve trade disputes, 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 is hampering 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 showed that current account surpluses remain concentrated in the euro zone and other advanced economies such as Singapore, while the US and UK deficits and some emerging market economies continue to slump.
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 were weighing on global trade flows, undermining confidence and disrupting investment. But has not succeeded in addressing external imbalances so far. According to the "Reuters".
Instead of exchanging tariffs on surplus and deficit countries, it would revive economic liberalization efforts and strengthen the multilateral trading rules regime that has been in force for 75 years, the IMF said.
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