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No currency manipulator labels from US, China on watch

The Biden administration will not designate any country as a currency manipulator, but it did name China, Vietnam and Taiwan among the nations that have failed to live up to global agreements not to use their currencies to gain unfair trade advantages

Via AP news wire
Friday 03 December 2021 10:06 EST
Treasury-Currency Report
Treasury-Currency Report (Copyright 2021 The Associated Press. All rights reserved.)

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The Biden administration will not designate any country as a currency manipulator, but it did name China Vietnam and Taiwan among the nations that have failed to live up to global agreements not to use their currencies to gain unfair trade advantages.

In a report to Congress released Friday, the Treasury Department cited China for a number of failures that prevent trading partners from gaining full knowledge of how it is manages its currency.

The Treasury plans to closely monitor the foreign exchange activities of China's state-owned banks to get a clearer picture of China's currency practices, according to the report.

Vietnam and Taiwan have violated a number of criteria that would justify naming them as currency manipulators and both will be placed on a monitoring list, according to the report.

Being named as a currency manipulator under U.S. law does not carry any immediate penalties but it does require Treasury to engage in negotiations with the foreign country in an effort to get it to alter its currency practices. If those negotiations fail, the administration can impose trade sanctions. Those sanctions can be challenged by countries before the World Trade Organization.

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