© Reuters. File photo: The U.S. Department of the Treasury will be held on August 30, 2020 in Washington, DC, USA.REUTERS/Andrew Kelly/File Photo
Authors: David Lauder and Andrea Shalal
(Reuters)-The U.S. Treasury Department said on Friday that Vietnam and Taiwan continue to exceed the threshold of possible exchange rate manipulation and strengthened analysis based on the 2015 U.S. Trade Law, but did not formally list them as manipulators.
The Treasury Department stated that in its semi-annual currency report, the major U.S. trading partners did not attempt to manipulate their currencies to gain trade advantage or prevent effective balance of payments adjustments during the year ending June 2021.
The statement stated that Vietnam and Taiwan have exceeded the thresholds for trade surplus, current account and foreign exchange intervention, and will continue to cooperate with them to resolve U.S. concerns
The Ministry of Finance stated that it was “satisfied with the progress Vietnam has made so far” and continued to start contacts with Taiwan in May.
When talking about Taiwan’s contacts, the Ministry of Finance said: “Such contacts include urging to develop a plan and take specific actions to address the underlying causes of currency undervaluation and external imbalances.”
The Treasury Department stated that Switzerland, which was marked as a manipulator by the Trump administration in 2020, has broken through only two of the three thresholds, but will continue to conduct an in-depth analysis of Swiss practices for at least one year.
The Ministry of Finance stated that it has combined Switzerland with 11 other countries (China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico.
Treasury Secretary Janet Yellen said in a statement accompanying the report: “The Treasury Department is working tirelessly to promote a stronger and more balanced global recovery, which will benefit American workers, including through currency-related relations with major economies. Close contact on the issue.”
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