US adds Taiwan, Vietnam to currency monitoring list

Created 11 June 2022
  • PDF
Editor Choice
Share
(0 votes, average 0 out of 5)

No major US trading partners such as China have been labeled as manipulating their currencies, but Taiwan and Vietnam were added to a “monitoring list” of foreign exchange policies, the Treasury Department said Friday.

US adds Taiwan, Vietnam to currency monitoring list

Washington also will continue "closely monitoring" China’s actions and again raised concerns about Beijing’s "lack of transparency" in its moves to influence currency markets, Treasury said in its semi-annual US report to Congress

The report looks at countries with large trade surpluses and which actively intervene in foreign exchange markets to keep their currencies from appreciating, which makes their exports more competitive.

Treasury put 12 economies on the monitoring list: China, Japan, Korea, Germany, Italy, India, Malaysia, Singapore, Thailand, Taiwan, Vietnam and Mexico.

Two countries — Ireland and Switzerland — were removed from the list since the December report. Switzerland had been declared a currency manipulator in December 2020, and continues to be subject to "enhanced" discussions.

Beijing has long been a target of scrutiny, and Washington has frequently accused the government of keeping the exchange rate artificially low via its massive stockpile of US dollars, undermining US manufacturers and workers.

"China’s failure to publish foreign exchange intervention and broader lack of transparency around key features of its exchange rate mechanism make it an outlier among major economies, and the activities of China’s state-owned banks in particular warrant Treasury’s close monitoring," Treasury said in the report.

China’s renminbi appreciated 4.4 percent against the US dollar in real terms, and continued to strengthen early this year until April, when it weakened rapidly due to the "darkening growth outlook," the report said.

A Treasury official noted that the country "faces some unique challenges" such as inflows of cash seeking a safe haven, including "when Russia’s war against Ukraine started."

"We continue to discuss these issues," the official told reporters.

With Switzerland, "we also have a new standing macroeconomic and financial dialogue" to deal with the issues, the official said.

Treasury reviewed 20 major US trading partners with bilateral goods trade with the United States of at least $40 billion annually.

The criteria are a large trade surplus with the United States, a significant current account surplus and evidence of "persistent, one-sided intervention" in foreign exchange markets.

 

Source: VNE

Maybe You Also Interesting :

» Rare 3-meter-long Indian python found in HCMC home

A three-meter-long Indian python found in the garden of a house in HCMC’s outskirts district of Nha Be was handed over to the forest department Friday.

» Vietnam seeks more foreign ownership in banks acquiring weaker lenders

The allowed foreign ownership ratio in stronger Vietnamese banks that acquire struggling lenders could jump to 49%, according to a draft government decree.

» Vietnam condoles death of former Chinese President Jiang Zemin

Vietnamese leaders have sent condolences to the government and people of China on the death of former Chinese President Jiang Zemin.