The current deficit has stabilized

Ministry of Finance of the U.S. on Thursday evening in his annual report to Congress on currency regimes in the world announced that the U.S. current-account deficit reached, at least a temporary stabilization. " According to the report, none of the major trading partners, the U.S. is not manipulating its currency for trade advantage, according to the criteria of Congress. The report noted that Japan has spent $ 119 billion in intervention in the foreign exchange market in the second half of last year and $ 60 billion in the first half.

China, as stated in the report, "has made many efforts to prepare for a flexible exchange rate regime."
Advanced dollar index, calculated by Federal Reserve on December 31, 2003. decreased by 12.9% from its most recent peak in February 2002. In the evaluation of currency regimes in order to decide whether there is a manipulation in order to obtain commercial advantage, the Treasury is investigating, in addition to courses directly to themselves, as the external balance, the accumulation of foreign reserves, macroeconomic trends, monetary and financial development, the state of institutional development and financial and exchange restrictions. U.S. current-account deficit rose as a percentage of GDP, with the first quarter of 1991., Reaching a temporary peak of 4.4% in the fourth quarter of 2000. before the reduction, in connection with the reduction of domestic and international activity, as stated in the report. "The current deficit has begun to grow again in the first quarter of 2002. With the restoration of the American economy. During the past seven quarters, the current deficit has reached at least a temporary stabilization in the region of 5% of GDP." The report says that because of the current deficit position of U.S. net investment (direct investment, evaluated at the current value of the stock market) fell to minus 2.6 trillion. $ On December 31, 2002., The latest date for which figures are available, from minus 2.3 trillion . $ at the end of 2001. Despite the large negative position, U.S. residents earn on their foreign investments in 2003. at $ 22 billion more than foreigners earn on their investments in the U.S.. This positive net income, said the report was the result of the fact that a large influx of net income from direct investment to compensate for the outflow of net income from portfolio investment.

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