US removes Vietnam from currency monitoring list
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Vietnam has been removed from the currency monitoring list by the U.S. Treasury Department.
The U.S. Treasury Department remained satisfied with progress made by the Asian country in addressing U.S. concerns about its currency practices, it said in a semi-annual report Thursday.
India, Italy, Mexico and Thailand were also removed from the list.
It noted no major U.S. trading partner manipulated its exchange rates to gain unfair competitive advantage through June 2022, but said it would stay in close touch with Switzerland on its currency practices.
Seven economies kept on the list were Japan, China, Germany, Malaysia, Singapore South Korea and Taiwan.
The Treasury report again called out China for its failure to publish foreign exchange intervention and the broader lack of transparency around key features of its exchange-rate mechanism.
A senior Treasury official said efforts by the U.S. Treasury and the International Monetary Fund had failed to make any headway with Beijing on the issue so far.
Treasury noted that Japan had intervened in the foreign exchange market to stem the pace of depreciation in the yen, its first such move since 1998, and underscored its believe that such actions should be taken only rarely.
“Treasury’s firm expectation is that in large, freely traded exchange markets, intervention should be reserved only for very exceptional circumstances with appropriate prior consultations,” it said.
Questions & Answers
Q.Which other nations were removed from the currency monitoring list alongside Vietnam?
Which other nations were removed from the currency monitoring list alongside Vietnam?
India, Italy, Mexico, and Thailand were also removed from the U.S. Treasury's currency monitoring list. This means the U.S. Is satisfied with their progress in addressing currency practice concerns.
Q.What was the U.S. Treasury's main concern regarding China's currency practices?
What was the U.S. Treasury's main concern regarding China's currency practices?
The U.S. Treasury criticised China for not publishing its foreign exchange intervention data. It also highlighted a broader lack of transparency concerning key aspects of China's exchange-rate mechanism.
Q.Which economies remain on the U.S. Currency monitoring list?
Which economies remain on the U.S. Currency monitoring list?
Seven economies are still on the list: Japan, China, Germany, Malaysia, Singapore, South Korea, and Taiwan. The U.S. Treasury will continue to monitor their currency practices closely.
Q.What was the U.S. Treasury's stance on Japan's recent intervention in the foreign exchange market?
What was the U.S. Treasury's stance on Japan's recent intervention in the foreign exchange market?
The U.S. Treasury acknowledged Japan's intervention to slow the yen's depreciation, its first since 1998. However, it believes such actions in large, freely traded markets should be rare and involve prior consultations.
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