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 June 2024 no major trading partner met all three criteria under the Trade Facilitation and Trade Enforcement Act of 2015 with respect to its macroeconomic and exchange rate policies: (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), and (3) persistent one-sided intervention in the foreign exchange market (i.e., conducting repeatedly, in at least eight of the last twelve months, net purchases of foreign currency that total at least two percent of the country’s GDP).
However, Treasury is maintaining China, Germany, Japan, Singapore, Taiwan, and Vietnam on – and removing Malaysia from and adding Korea to – its list of countries targeted for close scrutiny of their currency practices and macroeconomic policies.
In addition, under the Omnibus Trade and Competitiveness Act of 1988 Treasury has found that no major U.S. trading partner manipulated its exchange rate for purposes of preventing effective balance of payments adjustments and gaining unfair competitive advantage in international trade. At the same time, the report again cites China for its “failure to publish foreign exchange intervention and broader lack of transparency around key features of its exchange rate mechanism.”
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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