US adds Taiwan, Vietnam to currency monitoring list

• US Treasury said Taiwan exceeded some thresholds for possible currency manipulation

The US treasury department's currency Monitoring List of major trading partners placed 11 major economies that merit close attention to the US currency practices and macroeconomic policies.

The countries are China, Japan, South Korea, Germany, Italy, India, Malaysia, Singapore, Thailand, Taiwan, Vietnam, and Mexico, said the US Department of Treasury in its semi-annual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States.

Except for Taiwan and Vietnam (which were subject to enhanced engagement), all the other countries were on the Monitoring List in the December 2021 Report.

Reuters quoted a Taiwanese central bank official saying that the US understands Taiwan's exchange rate policy stance and the two sides have “good” communication. The US Treasury said Taiwan continued to exceed some thresholds for possible currency manipulation.

Taiwan's trade surplus with the US hit $40.2 billion in 2021, a historic high and up almost 30% compared with 2020. Taiwan's current account surplus last year was 14.8% of GDP. 

Source - Reuters

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