IMF: USD likely overvalued by 8.2% with a range of 5.2% to 11.2% during 2020
In its recently published External Sector Report, the International Monetary Fund noted that they have assessed the US dollar as likely overvalued by 8.2% with a range of 5.2% to 11.2% during 2020, as reported by Reuters.
"Combined global current account surpluses and deficits rose to 3.2% of global GDP in 2020 from 2.8% in 2019."
"Global current account imbalances expected to rise further in 2021, then narrow to about 2.5% of global GDP by 2025."
"Higher current account imbalances driven by covid aid spending in US and advanced countries; trade imbalances for medical goods; fall in demand for oil and travel."
"Staff assessed euro as undervalued by about 1.8% for euro area as a whole in 2020; for Germany, euro was undervalued by about 9.2%."
"Staff assessed chinese yuan as undervalued by 0.5% in 2020 with a range of -10.5% to +9.5%."
This report doesn't seem to be having a significant impact on the USD's performance against its rivals. As of writing, the US Dollar Index was down 0.07% on the day at 92.03.