Washington: The US Treasury Department said that no major trading partner of Washington meets the criteria as a currency manipulator, but Vietnam, Switzerland and Taiwan will be under enhanced monitoring for their currency practices.
In its semi-annual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US, the Department concluded that Vietnam, Switzerland and Taiwan met all three criteria for enhanced currency analysis under the Trade Facilitation and Trade Enforcement Act of 2015 during the four quarters through December 2020.
However, there is “insufficient evidence” to make a finding that Vietnam, Switzerland, or Taiwan manipulates its exchange rate for either of the purposes referenced in the Omnibus Trade and Competitiveness Act of 1988, the Department said.
The Treasury believed that “enhanced engagements” with Switzerland, Vietnam and Taiwan will enable it to better determine whether any of these economies intervened in currency markets to “prevent effective balance of payments adjustment or gain an unfair competitive advantage in trade”.
No other major US trading partner met the relevant 1988 or 2015 legislative criteria for currency manipulation or enhanced analysis during the review period, according to the Treasury.