The U.S. Treasury Department did not find any trading partner to have manipulated its currency last year, meaning no trading partner was labeled a currency manipulator. However, it added Japan to its currency policy monitoring list, while China, Vietnam, Malaysia, Singapore and Germany also remained on the list.
Reuters reported that the U.S. Treasury Department released its semi-annual report on the exchange rate policies of major U.S. trading partners on Thursday (June 20). In all four quarters of 2023, no economy's exchange rate policy was found to meet all three conditions and require "enhanced analysis."
The three conditions are: 1. The trade surplus with the United States is at least US$15 billion (S$20 billion); 2. The current account surplus exceeds 3% of gross domestic product (GDP); 3. The sustained one-way net foreign exchange purchases within 12 months reach at least 2% of GDP.
As long as two of the conditions are met, the economy will automatically be included in the exchange rate policy monitoring list.
The Treasury Department said Japan, Vietnam and Germany all meet the criteria for trade surpluses and large current account surpluses.
