US puts Switzerland on currency manipulation watchlist, South Korea closely watches foreign exchange policy

On June 16, the US Treasury Department announced the "list of countries that need to monitor foreign currency manipulation", including the addition of Switzerland.

The US put Switzerland on the currency manipulation monitoring list. (Source: istockphoto)

Switzerland was declared a currency manipulator by the US in December 2020 and has become a hot topic in discussions among US financial officials. Last year, the European country was removed from the currency monitoring list.

The US Treasury Department also said that South Korea was once again added to the list of countries closely monitored for foreign exchange policies.

In its latest report on foreign exchange policy released to Congress, the US Treasury Department put seven economies on the "blacklist", including China, Germany, Malaysia, Singapore, South Korea, Switzerland and Taiwan.

Compared to the last announcement 6 months ago, Japan has been removed from this list.

Countries and territories are placed on the monitoring list if they meet two out of three criteria under the US Trade Facilitation and Trade Enforcement Act of 2015, also known as the 2015 Act.

The three criteria include: a trade surplus with the US of more than $15 billion; a current account surplus exceeding 3% of a country's Gross Domestic Product (GDP); and one-sided, persistent intervention in the foreign exchange market for at least eight months of a year with net purchases exceeding 2% of GDP over a 12-month period.

Source: https://baoquocte.vn/my-dua-thuy-sy-vao-danh-sach-giam-sat-thao-tung-tien-te-han-quoc-bi-theo-doi-chat-che-chinh-sach-ngoai-hoi-231269.html