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April 19, 2021

China Not On Treasury’s List Of Currency Manipulators And Two Others Taken Off

As Reuters reported, while the U.S. Department of the Treasury believes Vietnam, Switzerland, and Taiwan have “tripped” the thresholds for possible currency manipulation, the department refrained from formally listing them as currency manipulators in a semi-annual report to Congress of foreign exchange policies.

The Trump administration had labeled Switzerland and Vietnam as currency manipulators.

Treasury Secretary Janet Yellen said her department will start or continue formal talks with the three countries about their practices.

In response, the State Bank of Vietnam said it will continue to pursue a flexible exchange rate policy. The Vietnamese government also said it welcomed the news that it had been taken off the U.S.’s list of currency manipulators and pledged to “maintain dialogues and consultancy” with the United States.

The Treasury Department said no other major U.S. trading partner, including China, met the criteria for being labeled as a currency manipulator or for enhanced analysis. According to Reuters, the department did urge China “to improve transparency regarding its foreign exchange intervention activities, the policy objectives of its exchange rate management regime, the relationship between the central bank and foreign exchange activities of the state-owned banks, and its activities in the offshore yuan market.”

It also placed China and 10 other countries — Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico — on its foreign exchange monitoring list.

Read the Treasury Department’s April 2021, and past reports, here.