Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Vietnam, Taiwan exceed U.S. Treasury currency thresholds, but no manipulator labels

EconomyDec 03, 2021 12:37PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly/File Photo

By David Lawder and Andrea Shalal

(Reuters) -Vietnam and Taiwan again exceeded the U.S. Treasury's thresholds for possible currency manipulation and enhanced analysis under a 2015 trade law, but the department on Friday refrained from formally branding them as manipulators.

Switzerland also narrowly escaped triggering all three manipulation criteria in the Treasury's latest semi-annual currency report, thanks to revised, broader measurements for trade and current account surpluses and foreign exchange market interventions.

All three had tripped the Treasury's thresholds in April prompting more intensive U.S. engagement to revise their practices. Former President Donald Trump's administration had branded Vietnam and Switzerland as manipulators in December, invoking a 1988 currency law.

In the latest report, the Treasury found that no major trading partners during the year through June 2021 sought to manipulate their currencies for a trade advantage or for preventing effective balance of payments adjustments.

The department said it would continue to work with Vietnam and Taiwan to address U.S. concerns. For Switzerland, which tripped only the trade and foreign exchange intervention thresholds, the Treasury said it would continue to conduct an in-depth analysis of the alpine country's practices for another year.

Switzerland was moved to the Treasury's "Monitoring List" of major trading partners that merit close attention to their currency practices, along with 11 other countries that remained on the list: China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico.

Treasury said it was "satisfied with progress made by Vietnam to date" and would 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.

The United States in July dropped a threat to impose tariffs on Vietnamese goods after the country's central bank agreed with the U.S. Treasury to refrain from manipulation and make its exchange rate practices more transparent. The deal followed a Reuters report that Vietnam had sought to shift its spot dollar purchases to forward purchase contracts with banks to evade the Treasury criteria.


The Treasury's latest report did not spark any significant immediate moves in the Taiwan dollar, the Vietnamese dong or the Swiss franc.

A Taiwanese central bank official said discussions with Washington would continue but blamed Taiwan's large trade deficit with the United States on strong demand for technology products fueled by the COVID-19 pandemic and production shifts prompted by U.S. tariffs on Chinese goods.

Switzerland's finance ministry repeated its longstanding denial that the country's central bank engages in manipulation of the franc for an economic advantage.

"Foreign exchange interventions are necessary for Swiss monetary policy in order to maintain appropriate monetary conditions and thus price stability," the ministry said in a statement.


The Treasury report criticized China's lack of transparency in its foreign exchange practices, citing a wide discrepancy between the People's Bank of China's foreign exchange assets and net foreign exchange settlement data, suggesting that state- owned banks were being used to conduct official interventions.

"Treasury will continue to closely monitor China’s use of exchange rate management, capital flow, and macroprudential measures and their potential impact on the exchange rate," it said in the report.

A Reuters analysis in June found that Chinese banks had amassed over $1 trillion amid little official PBOC intervention, posing a risk to the government's ability to control the yuan exchange rate.

Treasury Secretary Janet Yellen told the Reuters Next virtual conference on Thursday that she would continue to engage her Chinese counterpart, Vice Premier Liu He, on foreign exchange policy issues.


In the second currency report issued by the Biden administration, the Treasury also adjusted the three manipulation thresholds under the 2015 law to include somewhat broader measures of trade surpluses, foreign exchange interventions and current account surpluses.

A Treasury official said Switzerland would have exceeded the old current account surplus threshold, and narrowly missed exceeding the new one.

"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," Yellen said in a statement accompanying the report.

Vietnam, Taiwan exceed U.S. Treasury currency thresholds, but no manipulator labels

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
MK MK Dec 03, 2021 10:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Come on, yankees, block import from all those countries. China also! I want to see how you eat your green paper :)
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email