US Treasury Monitors Exchange Rate Practices of China and Nine Other Nations

Tokyo (ANTARA) - The United States Department of the Treasury has kept China, Japan, Thailand and seven other major trading partners on a watch list concerning potentially unfair foreign exchange practices.

In its semi-annual report to the US Congress on Thursday (23 July), the department did not designate any trading partner as a currency manipulator, a designation that could result in the imposition of US sanctions.

However, the report, which evaluates economic and currency practices in 2025, noted that China continues to stand out among major US trading partners due to a lack of transparency regarding its exchange rate policies and practices.

The seven other countries on the US “monitoring” list are Germany, Ireland, Singapore, South Korea, Switzerland, Taiwan and Vietnam.

The US Treasury uses three criteria to assess whether a country is manipulating its exchange rate to gain an unfair trade advantage.

Major US trading partners are placed on the list if they meet two of the three criteria.

Regarding Japan, the report stated that the country did not intervene in the foreign exchange market during the assessment period.

Japan was also judged to be highly transparent about its intervention activities, publishing aggregate monthly data as well as details of daily interventions once every three months.

The report also noted that the yen has continued to weaken despite the interest rate gap between the US and Japan narrowing.

“While global factors, such as volatility in financial markets and oil prices, have likely affected the yen’s exchange rate, excessive volatility in the yen is undesirable,” the statement read.

Source: Kyodo