US Treasury Keeps Taiwan, Japan, South Korea on Currency Monitoring List; No Major Trade Partners Labeled as Manipulators

The US Treasury Department released its semiannual foreign exchange policy report on April 23, finding no major trade partners guilty of currency manipulation. However, ten countries—including China, Taiwan, Japan, South Korea, Thailand, Vietnam, Singapore, Germany, Switzerland, and Ireland—remain on the Currency Monitoring List.

The report assessed foreign exchange practices across four quarters through the end of last year. While no country met all three criteria for formal designation as a currency manipulator, several major Asian exporters and European economies continue to be monitored due to persistent bilateral trade surpluses and significant foreign exchange interventions.

Taiwan's Central Bank Governor Yang Jin-long reiterated that the central bank follows the 'Willow Tree Theory' in managing the New Taiwan Dollar, aiming to prevent excessive volatility. The bank discloses its net foreign exchange transactions quarterly and maintains open communication channels with the US Treasury.

The US noted that China's exchange rate policies and transparency remain insufficient. Thailand, Singapore, and Switzerland each meet one of the three criteria for potential manipulation, primarily related to trade surplus or intervention levels.