By David Lawder and Andrea Shalal
(Reuters) – The U.S. Treasury Department on Friday said Vietnam and Taiwan continued to exceed its thresholds for possible currency manipulation and enhanced analysis under a 2015 U.S. trade law, but refrained from formally branding them as manipulators.
The Treasury said that in its semi-annual currency report, no major U.S. trading partners sought to manipulate their currencies for a trade advantage or for preventing effective balance of payments adjustments during the year through June 2021.
It said that Vietnam and Taiwan exceeded its trade surplus, current account and foreign exchange intervention thresholds, and it will continue to work with them to address U.S. concerns
Treasury said it was “satisfied with progress made by Vietnam to date” and continue engagement started in May with Taiwan.
“This engagement includes urging the development of a plan with specific actions to address the underlying causes of currency undervaluation and external imbalances,” Treasury said of the Taiwan engagement.
Treasury said Switzerland, which was labeled a manipulator in 2020 by the Trump administration, tripped only two out of the three thresholds, but would continue to conduct an in-depth analysis of Switzerland’s practices for at least another year.
Treasury said it moved Switzerland to its “Monitoring List” of major trading partners that merit close attention to their currency practices, along with 11 other countries: China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico.
“Treasury is working relentlessly to promote a stronger and more balanced global recovery that benefits American workers, including through close engagement with major economies on currency-related issues,” Treasury Secretary Janet Yellen said in a statement accompanying the report.
(Reporting by David Lawder and Andrea Shalal; Editing by Dan Burns)
