The Treasury refrains from appointing currency manipulators
The Treasury Department has not named any major trading partners as currency manipulators in its semestrial report on exchange rate policies released on Friday.
The Treasury concluded that no major US trading partner was manipulating exchange rates with the United States for the purpose of obtaining an unfair trade advantage. However, he said in the report that Vietnam and Taiwan continue to meet the criteria for in-depth analysis.
The Treasury said the Vietnam Department and State Bank reached an agreement in July to address concerns about Vietnam’s monetary practices, and so far the Treasury is satisfied with Vietnam’s progress. The Treasury said it had engaged with Taiwan on its monetary practices since May.
The Treasury also named 12 trading partners on a “watch list” of economies whose monetary practices deserve special attention. They are: China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, Mexico and Switzerland. All of these trading partners were also on the watch list in the Treasury’s previous report in April, with the exception of Switzerland, which previously met the criteria for an in-depth analysis.
The Treasury noted in its report that China is an outlier among major economies because it is not transparent about key aspects of its exchange rate mechanism.
“The Treasury is working tirelessly to promote a stronger and more balanced global recovery that benefits American workers, including through close engagement with major economies on currency issues,” the Treasury Secretary said. Janet YellenJanet Louise YellenYellen: Omicron ‘Could Cause Major Problems’ To Global Economy Real Relief From High Gas Prices House Sets Up Showdown With Senate MORE said in a press release.