MNI:US Monitoring 6 States Including China For FX Manipulation

No major trading partner of the United States is manipulating their currency to gain an unfair advantage, the Treasury said Tuesday, although it has placed six countries on its monitoring list including China, Germany, Malaysia, Singapore, Taiwan, and Vietnam.

“Most foreign exchange intervention by U.S. trading partners over the Report period was in the form of selling dollars, actions that served to strengthen their currencies," said Treasury Secretary Janet Yellen in a statement. Korea and Switzerland were removed from the monitoring list in this report, having met only one of three criteria for two consecutive reports. The report reiterated Treasury’s call for increased transparency from China.

The report noted Japanese authorities intervened in currency markets in September and October 2022, the first intervention in currency markets in almost 11 years, but it was aimed at reducing heightened volatility of the yen.