Despite no country being labelled a 'currency manipulator' in 2024, the countries subject to enhanced scrutiny expanded to nine: China, Japan, Ireland, Vietnam, Singapore, Germany, South Korea, Taiwan and Switzerland.
Japan and South Korea remain under close watch due to past interventions and sustained trade surpluses with the United States.
Taiwan and Singapore were included for meeting current account and foreign exchange criteria.
Though the eurozone monetary policy is set by the European Central Bank, Germany continues to appear on the list due to its long-running current account surplus.
Ireland was newly added for its rising high-tech and pharmaceutical exports to the United States, and Switzerland re-entered the list following a surge in its trade surplus.
Vietnam posted a goods trade surplus of over $105 billion with the United States in 2023, the highest among all US trading partners.
Inclusion in the watch list does not, however, entail sanctions or indicate currency manipulation. Vietnam has been on the list since 2019.
A country is placed on the list if it meets at least two out of three: a goods trade surplus with the US of at least $15 billion; a current account surplus above 3 per cent of GDP; and persistent, one-sided foreign exchange intervention.
ALCHEMPro News Desk (DS)
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