USA Adds Japan to Currency Manipulation Watchlist: Other Significant Trading Partners Avoid Designation
In the latest semiannual report by the US Department of the Treasury, Japan has been added to the watchlist for currency manipulation, joining Germany, China, Vietnam, Taiwan, Malaysia, and Singapore. The criteria for inclusion on the watchlist include a trade surplus with the USA of at least 15 billion dollars, a current account surplus of over three percent of GDP, and sustained one-sided net foreign currency purchases. Meeting two out of three criteria leads to automatic inclusion on the watchlist, with all three triggering a more thorough review. Official designation as a currency manipulator can result in punitive measures such as imposing tariffs. Notably, there were no significant trading partners designated as currency manipulators last year. Meanwhile, in the financial markets, US investors engaged in profit-taking after a tech rally, resulting in a mixed market close.
Related Sources: