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12/3/2021

Treasury Releases Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United St…

Treasury Releases Report on Macroeconomic and Foreign
Exchange Policies of Major Trading Partners of the United States
December 3, 2021

WASHINGTON – The U.S. Department of the Treasury today delivered its semiannual Report
to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of
the United States. In this Report, Treasury reviewed and assessed the policies of major U.S.
trading partners, comprising more than 80 percent of U.S. foreign trade in goods and services,
during the four quarters through June 2021.
In accordance with the Omnibus Trade and Competitiveness Act of 1988 (the 1988 Act), the
Report concludes that no major U.S. trading partner manipulated the rate of exchange
between its currency and the U.S. dollar for purposes of preventing e ective balance of
payments adjustments or gaining unfair competitive advantage in international trade. The
Report also concludes that both Vietnam and Taiwan continue to meet all three criteria under
the Trade Facilitation and Trade Enforcement Act of 2015 (the 2015 Act) during the period
under review, and that the currency practices of twelve economies require close attention.
Treasury has conducted enhanced analysis of Vietnam and Taiwanʼs macroeconomic and
foreign exchange policies, as reflected in the Report.
“Treasury is working relentlessly to promote a stronger and more balanced global recovery
that benefits American workers, including through close engagement with major economies
on currency-related issues,” Secretary of the Treasury Janet L. Yellen said today.
As a result of discussions through the enhanced engagement process, Treasury and the State
Bank of Vietnam (SBV) reached agreement in July 2021 to address Treasuryʼs concerns about
Vietnamʼs currency practices.[1] Treasury continues to engage closely with the SBV on
Vietnamʼs progress in addressing Treasuryʼs concerns and is satisfied with progress made by
Vietnam to date.
Treasury will continue its enhanced engagement with Taiwan, which was launched in May.
This engagement includes urging the development of a plan with specific actions to address
the underlying causes of currency undervaluation and external imbalances.
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12/3/2021

Treasury Releases Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United St…

Switzerland, which had previously exceeded the thresholds for all three criteria under the
2015 Act, exceeded the thresholds for two of the three criteria over the four quarters through
June 2021. Although Switzerland no longer meets all three criteria for enhanced analysis,
Treasury will continue to conduct an in-depth analysis of Switzerland until it does not meet all
three criteria under the 2015 Act for at least two consecutive Reports. Meanwhile, Treasury
will continue its enhanced bilateral engagement with Switzerland, which commenced in early
2021, to discuss the Swiss authoritiesʼ policy options to address the underlying causes of its
external imbalances.
Treasury found that twelve economies warrant placement on Treasuryʼs “Monitoring List” of
major trading partners that merit close attention to their currency practices: China, Japan,
Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, Mexico, and Switzerland.
All except Switzerland were on the Monitoring List in the April 2021 Report.
The Report also emphasizes that Chinaʼs failure to publish foreign exchange intervention data
and broader lack of transparency around key features of its exchange rate mechanism make it
an outlier among major economies, and Treasury will closely monitor the foreign exchange
activities of its state-owned banks.
Todayʼs Report is submitted to Congress pursuant to the Omnibus Trade and Competitiveness
Act of 1988, 22 U.S.C. § 5305, and Section 701 of the Trade Facilitation and Trade Enforcement
Act of 2015, 19 U.S.C. § 4421.
The full report

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[1] See “Joint Statement from the U.S. Department of the Treasury and the State Bank of
Vietnam.” Available at: https://home.treasury.gov/news/press-releases/jy0280.

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