US Treasury names 12 countries of interest, no currency manipulators, in report to Congress
The report, to which the Office of International Affairs contributed, has experienced strong global economic growth – up 5.9% in 2021 after contracting 3.1% in 2020. Economies that âhave undertaken strong support for the economy. macroeconomic policy âas well as high immunization levels saw the strongest surge.
The Treasury has not appointed any currency manipulator, but it has notably updated the watchlist, which marks countries of interest regarding their monetary practices and macroeconomic policies. After the U.S. Treasury adds a country to the list, it remains on the list for at least two consecutive reports.
The 2021 report added Switzerland to a list that already included China, Japan, Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand and Mexico.
China stood out as a particularly problematic country due to the country’s “non-publication of foreign exchange intervention” amid a greater lack of transparency.
“The activities of state-owned banks in particular warrant close scrutiny by the Treasury,” the report said.
The Treasury separately highlighted Vietnam, Taiwan and Switzerland for “improved” or “deeper” analysis due to the “asymmetric and sustained” foreign exchange intervention.
The Treasury has discussed its concerns with Vietnam and Taiwan, but will continue to monitor each to see how those countries respond to them over the next few years.
The US economy itself has experienced a “relatively robust” recovery in labor markets, with labor force participation reaching around 81% by the end of 2020, but well below peak. before the pandemic.
This rate slowed significantly in 2021, with a total of 15.7 million jobs recovered by June 2021, but the rate itself has “changed little”.
Treasury Secretary Janet Yellen hailed the report as an indication of positive progress as the United States continues to work on its post-pandemic recovery despite a Department of Labor report published Friday that the payroll in November only increased by 210,000 – well below the 550,000 jobs forecast by Refinitive economists.
âThe Treasury is working tirelessly to promote a stronger and more balanced global recovery that benefits American workers, including through closer engagement with major economies on currency issues,â Yellen said in a prepared statement.
The Associated Press contributed to this report.