However, Washington has expanded the list of partners who need to monitor currency after adding Ireland and Switzerland.
Currently not “labeling” China is the currency manipulation, although its currency is suffering from “devaluation pressure”, but the US Finance still issues a warning that China “emerged between our major trading partners about the lack of transparency around its policies and exchange rate activities”.
“This lack of transparency will not be able to hinder the Ministry of Finance of the Chinese face points if there is evidence that it is intervention of monetary intervention through official or unofficial channels to combat the price increase (of the yuan) in the future,” the US Finance said.
The Ministry of Finance also said that some markets such as China, Japan, South Korea, Taiwan, Singapore, Germany, Ireland, Switzerland … are on the list that needs to monitor foreign exchange more closely.
Countries meet two criteria – trade surplus with the United States at least US $ 15 billion, a global current account surplus over 3% of GDP and buying foreign exchange continuously – will automatically be included in the US monetary monitoring list. Ireland and Switzerland have just been added to this list due to a large -current trade surplus and account with the United States.
BankThe Swiss Central Government (SNB) on June 6 denied the monetary manipulation, and affirmed that he would continue to act for the benefit of Switzerland because the Swiss Francs strongly helped pushing inflation to the negative level last month.
“SNB does not participate in any manipulation activities for Swiss Francs,” the bank said. “SNB does not seek to prevent the adjustment of trade balance or gain unfair competition for the backgroundeconomySwitzerland “.
President Trump, during his first term, determined that China was a currency manipulation country in August 2019, a move made in the context of escalating US-China trade tensions. Beijing was later removed from the monetary manipulation list in January 2020 when Chinese officials came to Washington to sign a trade agreement with the United States.
In 2024, it was generally highlighted the price of the US dollar on a large scale when the green silver coat increased by 7% compared to the monetary basket of major trading partners. This development makes it difficult for the Ministry of Finance to find evidence of the consistent one -way actions of countries to weaken their currencies to have a competitive advantage, because most currencies are in general.
However, that fact may change this year because the US dollar has decreased by about 9% since Mr. Trump returned to the White House on January 20 and launched a trade war that made homeowners.investGlobal must reconsider their commitments to the US market.
In the current context, countries may intervene to try to prevent or reverse the situation of their currency continued to increase prices and the Ministry of Finance officials said they would closely monitor such acts.
