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The US Department of the Treasury defined Switzerland and Vietnam as “currency manipulators.”
The Treasury Department presented to Congress the Report on Macroeconomic and Foreign Exchange Policies of the Major Trading Partners of the United States.
In the report, which assessed the policies of 20 major US trading partners during the 4 quarters ending in June 2020, it was noted that Switzerland and Vietnam were labeled “currency manipulators.”
USED THE RULES FOR A COMPETITIVE ADVANTAGE
In the report, it was stated that in the last four quarters to June 2020, Switzerland and Vietnam made balance of payments adjustments using exchange rates, and Vietnam also used exchange rates specifically to gain an unfair competitive advantage in foreign trade. .
A CALL FOR TRANSPARENCY TO CHINA
In the report, which also called for China to increase transparency in exchange rate management, Thailand, Taiwan and India were included on the Treasury Ministry’s watch list for closer monitoring, Japan, Korea, Germany, Italy, Singapore and Malaysia and China. It was reported that he retained his place on the list.
“A STRONG STEP FOR GROWTH”
In his assessment, US Secretary of the Treasury Steven Mnuchin stated that the Department has taken an important step to protect economic growth and opportunities for American employees and businesses.
WILL FOLLOW
“The Treasury will follow the findings on Vietnam and Switzerland to work towards eliminating practices that create an unfair advantage for foreign competitors,” Mnuchin said.
Twice a year, the United States Department of the Treasury presents the Macroeconomic and Foreign Exchange Policies Report of the United States’ Major Trading Partners, which analyzes whether countries are manipulating their currencies.
THERE ARE 3 CRITERIA
Three main criteria are taken into account before a country is declared manipulative. These criteria are listed as “foreign trade surplus of more than 20,000 million dollars with the US”, “foreign exchange intervention greater than 2% of the country’s GDP” and “current account surplus greater than 2% of GDP”.
WILL IT RISE IN DOLLARS?
