U.S. Treasury Labels Switzerland, Vietnam as Currency Manipulators

US Treasury Labels Switzerland, Vietnam as Currency Manipulators
Photo Credit: Getty Image

The U.S. Treasury labeled Switzerland and Vietnam as currency manipulators on Wednesday and added three new names to a watch list of countries it suspects of taking measures to devalue their currencies against the dollar.

Treasury said that through June 2020 both Switzerland and Vietnam had intervened in currency markets to prevent effective balance of payments adjustments.

The Treasury said in the report semi-annual currency manipulation that Vietnam had acted to gain an unfair competitive advantage in international trade as well.

US Treasury Labels Switzerland, Vietnam as Currency Manipulators
Photo Credit: Getty Image

The action comes as the global coronavirus pandemic skews trade flows and widens US deficits with trading partners, an irritant to Trump who won office four years ago partly on a promise to close the US trade gap.

To be labeled a manipulator, countries must at least have a $20 billion-plus bilateral trade surplus with the United States, foreign currency intervention exceeding 2% of gross domestic product, and a global current account surplus exceeding 2% of GDP.

The Treasury also said its monitoring list of countries that meet some of the criteria has grown to 10 with the addition of Taiwan, India and Thailand, others on the list include China, Japan, Korea, Germany, Italy, Singapore and Malaysia.

The Treasury also said that India and Singapore had intervened in the foreign exchange market in a sustained asymmetric manner but didn’t meet other requirements to warrant designation as manipulators.


Dive in!

Join millions of our readers worldwide and get special news coverage update directly sent to you for free.

We promise we’ll never spam! Take a look at our Privacy Policy for more info.

More Stories

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Homepage for World Breaking News

Forsige uses cookies to improve your experience. Are you OK with this? You can opt-out if you wish. Accept Read More

Privacy & Cookies Policy