All articles tagged with #currency manipulation
The U.S. has added Ireland to its list of countries monitored for potential currency manipulation due to its large trade surplus with the U.S., driven by pharmaceutical and tech exports, amidst ongoing trade tensions and negotiations.
The US Treasury's semi-annual report found no major trading partners manipulating their currencies to gain unfair trade advantages in the past year, though countries like China, Ireland, and Switzerland are closely monitored for their currency practices, with China remaining under scrutiny for transparency issues despite not being labeled a manipulator.
The US Treasury's semiannual report assesses the macroeconomic and foreign exchange policies of major US trading partners, concluding that none manipulated their currencies to gain unfair trade advantages during 2024, while highlighting concerns about transparency, especially with China, and emphasizing ongoing vigilance and potential countermeasures against unfair currency practices.
The US Treasury warns that it will scrutinize and potentially take action against trading partners engaging in unfair currency practices, such as excessive intervention in foreign exchange markets, which distort trade and harm US manufacturing and economic strength. While no major manipulation has been found in recent quarters, countries like China, Japan, and Germany are under close watch for opaque exchange rate policies.
US Treasury Secretary Janet Yellen is set to visit China in an effort to improve communication between the two countries, but tensions remain high. Contentious issues include technology and trade controls, deteriorating business environments, currency manipulation, global debt, and human rights and national security concerns. The Biden administration's restrictions on Chinese access to critical technology and investment, as well as the ongoing tariffs imposed by the Trump administration, continue to strain relations. Yellen's visit is not expected to yield major breakthroughs, but rather aims to ease tensions and foster dialogue between the world's two largest economies.