The U.S. Department of the Treasury has released its semiannual report to Congress on the macroeconomic and foreign exchange policies of major trading partners of the United States. This report covers about 78 percent of U.S. foreign trade in goods and services over the four quarters ending June 2024.
In compliance with the Omnibus Trade and Competitiveness Act of 1988, the report evaluated whether any major U.S. trading partner manipulated currency exchange rates with the U.S. dollar to prevent balance of payments adjustments or gain an unfair competitive edge in international trade during this period. The findings concluded that no such manipulation occurred.
Furthermore, according to the Trade Facilitation and Trade Enforcement Act of 2015, no major trading partner met all three criteria for enhanced analysis during these four quarters.
The Biden Administration opposes any attempts by trading partners to manipulate currency values unfairly against American workers' interests.
"Treasury firmly advocates for our major trading partners to adopt policies that support strong, sustainable, and balanced global growth and reduce excessive external imbalances," stated Secretary of the Treasury Janet L. Yellen. "Treasury continues to engage closely on currency-related issues to ensure a level playing field for America’s firms and workers."
Seven economies have been placed on Treasury's "Monitoring List" due to their currency practices and macroeconomic policies: China, Japan, Korea, Singapore, Taiwan, Vietnam, and Germany.
The report also highlighted concerns regarding China's transparency in foreign exchange interventions and key features of its exchange rate policy. This lack of transparency positions China as an outlier among major economies warranting close monitoring by Treasury.
This report is submitted pursuant to Section 3005 of the Omnibus Trade and Competitiveness Act of 1988 and Section 701 of the Trade Facilitation and Trade Enforcement Act of 2015.
