U.S. Department of the Treasury releases foreign exchange report finding no currency manipulators and listing ten economies for enhanced monitoring

The U.S. Department of the Treasury delivered its semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, reviewing economies representing about 78 percent of U.S. foreign trade in goods and services over the four quarters through June 2025. Treasury concluded that no major trading partner manipulated its currency against the U.S. dollar for purposes of preventing effective balance of payments adjustment or gaining an unfair competitive advantage, and that no economy met all three criteria for enhanced analysis under the Trade Facilitation and Trade Enforcement Act of 2015. The report’s Monitoring List includes China, Japan, Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland, with Thailand added relative to the June 2025 report. Treasury also introduced strengthened analytical approaches, including broader monitoring of exchange-rate smoothing in both depreciation and appreciation episodes, closer scrutiny of policies beyond spot intervention such as capital controls, macroprudential measures and government investment vehicles, and increased attention to central banks’ net forward positions given the role of foreign exchange swaps. While China was not designated a currency manipulator, Treasury highlighted China’s lack of transparency on exchange-rate policies and practices and indicated it could designate China in future if evidence suggests intervention to resist renminbi appreciation.