In its semi-annual foreign exchange rate report, the Treasury Department again did not name any trading partners as currency manipulators.
The report finds that for the four quarters through December 2021 Switzerland had (1) a significant bilateral trade surplus with the U.S. (i.e., at least $15 billion), (2) a material current account surplus (i.e., at least three percent of the country’s gross domestic product, or a surplus for which there is a current account gap of at least one percentage point), and (3) engaged in persistent one-sided intervention in the foreign exchange market (i.e., conducted repeatedly in eight of the last twelve months net purchases of foreign currency that total at least two percent of the country’s GDP).
However, Treasury has also found that during this period neither Switzerland nor any other country manipulated its exchange rate for purposes of preventing effective balance of payments adjustments and gaining unfair competitive advantage in international trade.
Treasury states that Vietnam and Taiwan no longer meet all three of the above criteria, as they did at the time of the previous report, but that it will continue its in-depth analysis of these economies’ macroeconomic and exchange rate policies until they do not meet all three criteria for at least two consecutive reports.
Treasury is maintaining China, Japan, Korea, Germany, Italy, India, Malaysia, Mexico, Singapore, and Thailand on, and adding Taiwan and Vietnam to, a list of countries targeted for close scrutiny of their currency practices. Ireland has been removed from this list after having met only one out of three criteria for two consecutive reports.
For more information, please contact Nicole Bivens Collinson (at (202) 730-4956 or via email) or Kristen Smith (at (202) 730-4965 or via email).
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