Overview

• The Treasury’s semi-annual report declared that none of its major trading partners manipulated their currencies in 2024, continuing a trend since 2016.
• Ireland and Switzerland were added to a nine-country monitoring list alongside China, Japan, South Korea, Taiwan, Singapore, Vietnam and Germany due to sizable trade and current account surpluses.
• Treasury Secretary Scott Bessent vowed to use all available tools to counter unfair currency practices and leave China open to future designation if evidence emerges.
• China was singled out for a “lack of transparency” around its exchange rate policies, prompting a warning that any formal or informal interventions could trigger sanctions.
• South Korea’s finance ministry pledged to deepen regular communications with the US Treasury on foreign exchange policy as part of ongoing bilateral trade discussions.