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4w ago

U.S. Treasury Finds No Currency Manipulators, Keeps 10 Economies on Watchlist

The agency broadened scrutiny to include interventions that smooth depreciation, with three countries now close to being dropped at the next review.

The US Department of the Treasury Building in Washington, D.C., U.S., July 11, 2026. REUTERS/Daniel Heuer
Image
This composite image shows banknotes of South Korea and the United States. (Yonhap)
This captured image from the Treasury Department shows the front page of the department's latest Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. (PHOTO NOT FOR SALE) (Yonhap)

Overview

  • Treasury said on July 23 that no major trading partner met the threshold for a formal ‘currency manipulator’ label for 2025, but 10 economies remain under enhanced monitoring.
  • The monitoring list includes China, Japan, South Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland and Switzerland, all carried over from the January report.
  • Treasury revised its approach in January 2026 to judge whether interventions that smooth exchange-rate moves are being used to resist depreciation as well as to resist appreciation.
  • South Korea met two of the three statutory tests — a large bilateral surplus with the U.S. and a current-account surplus of 6.6% of GDP — and the report said the won faced sustained depreciation pressure; Seoul says it will keep close talks with Washington to protect market stability.
  • Thailand, Singapore and Switzerland each met only one statutory criterion and could be removed from the watchlist if they fail to meet a second test by the next semiannual report; a manipulator designation, which was not used, would trigger intensified U.S. engagement and possible trade actions.