U.S. Treasury says semi-annual currency report found no major U.S. trading partners manipulated currency to gain unfair trade advantage in four quarters through December 2024
- No major trading partners met all three criteria for enhanced analysis during review period
- Monitoring list of trading partners whose currency practices ‘merit close attention’ includes China, Japan, South Korea, Singapore, Taiwan, Vietnam, Germany, Ireland and Switzerland
- Ireland, Switzerland added to monitoring list due to large bilateral trade surplus with U.S. and large global current account surplus
- While China is not labeled a currency manipulator amid yuan depreciation pressure, China stands out among trading partners for lack of transparency on exchange rate practices and policies
- Lack of transparency will not preclude Treasury from designating China if evidence suggests it is intervening through formal or informal channels to resist yuan appreciation in the future
The U.S. Treasury’s semi-annual currency report is an official document submitted to Congress that assesses the foreign exchange policies of major U.S. trading partners. Its primary focus is to determine whether any country is deliberately manipulating its currency to gain an unfair trade advantage—typically by undervaluing their currency to boost exports to the U.S. The report is mandated by the Omnibus Trade and Competitiveness Act of 1988 and the Trade Facilitation and Trade Enforcement Act of 2015, which require Treasury to monitor and analyze currency practices globally.
Each report typically reviews economies with significant bilateral trade surpluses with the U.S., material current account surpluses, and persistent one-sided currency intervention. Based on these criteria, Treasury may label a country as meeting enhanced analysis thresholds and place it on a “Monitoring List.” In more serious cases, a country may be formally designated a currency manipulator, though this is rare and politically sensitive. The designation can trigger bilateral negotiations and, potentially, sanctions if corrective action isn’t taken.
While the label “currency manipulator” gets the most attention, the report is also a key tool in the Treasury’s broader oversight of global macroeconomic imbalances. It provides detailed commentary on global FX trends, capital flows, and policy frameworks, and it often signals Washington’s diplomatic posture towards countries like China, Japan, Germany, and others with large external surpluses or tightly managed exchange rates.
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