According to a report released by the US Department of the Treasury, no major trading partner of the country was labeled as a currency manipulator.
Outstanding conclusions:
“The currency report concludes that Vietnam and Taiwan continue to meet the three manipulation criteria for enhanced engagement under the 2015 law.”
“Reaching an agreement with Vietnam in July to address the concerns of the Treasury, it is satisfied with the progress made to date.”
“It will continue to enhance the engagement with Taiwan that was launched in May.”
“Taiwan should be urged to develop a specific action plan to address the causes of currency undervaluation and external imbalances.”
“Switzerland no longer meets the three criteria for improved analysis.”
“It will continue to conduct an in-depth analysis of Switzerland until it no longer meets all three criteria under the 2015 law for at least two consecutive reports.”
“It will continue to enhance bilateral engagement with Switzerland to discuss policy options to address the underlying causes of external imbalances.”
“Include 12 economies on the ‘watch list’ for exchange rate practices: China, Japan, Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, Mexico and Switzerland.”
“The fact that China does not publish the data on foreign exchange intervention and the lack of transparency make it an ‘outlier’ among major economies, the activities of state banks will be closely monitored.”
“The Treasury has raised concerns about China’s practices with its Chinese counterparts.”
“Closely monitoring China’s data and policies, concerned about persistent ‘very large and persistent’ bilateral trade surplus “.
“Especially focused on increased intervention in foreign exchange markets by China’s state banks during the last years and a half.”
“Adjustment of thresholds for three main criteria of manipulation according to the law of 2015”.
“The trade surplus threshold has shifted to a goods and services surplus of $ 15 billion from a goods surplus of $ 20 billion.”
“The current account surplus threshold was moved to 3% of GDP or the estimated current account gap of 1%, from the previous surplus of 2% of GDP.”
“Now measuring the persistence of the net purchases of foreign currency during 8 of 12 months against 6 of 12 months before.”
“Five countries (Singapore, Taiwan, Vietnam, India and Switzerland) intervened in the currency market in a ‘sustained and asymmetric manner’ to weaken currencies during the four quarters through June 2021“.
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