The United States has put nine currencies on its watch list of the nations being monitored for potential currency manipulation.
Remarkably, the Trump administration has once again not labeled China a currency manipulator but kept the country on that list of nine nations that the U.S. is tracking their trade surpluses.
The report released to Congress on Tuesday said that there is no country in the world that meets the criteria to be labeled a currency manipulator. But while the report noted that, it named China, Germany, Italy, Ireland, Japan, South Korea, Malaysia, Singapore, and Vietnam as nations that are being tracked.
The current report has excluded India and Switzerland which were on the previous watch list the U.S. released in October last year.
The Treasury Department issues a report to Congress detailing whether there is any nation that has sought to manipulate its currency in order to gain undue trade advantages over the U.S.
The report is issued every six months and under the law, any nation found to do so faces potential trade sanctions from the United States. Initially passed in 1988, the law mandating Treasury to monitor other currencies was expanded in 2016. The new law detailed what criteria Treasury applied to in its assessment.
The last time the U.S. labeled a country as a currency manipulator was in 1994. At the time, the U.S. president Bill Clinton’s administration said China had been manipulating its currency.
Donald Trump on his part threatened to label China a currency manipulator right from his campaign trail in 2016. However, his administration has failed to reach that conclusion on five previous occasions.
Treasury said that the list of nations reviewed in the latest round expanded from twelve to 21. According to the report, the department had lowered its review threshold to accommodate such criteria as the size of a given country’s trade surplus with the U.S. and with the world.
It also included a review of how many times a country intervened in its currency markets.
China, Germany, Japan, and South Korea were on the previous list released last October, while the latest list adds Italy, Ireland, Singapore, Malaysia, and Vietnam.