**U.S. Treasury Finds No Currency Manipulation Among Major Trade Partners**

In its latest semi-annual appraisal, the U.S. Treasury Department announced that no major trading partner had manipulated their currency to achieve an unfair trade advantage in the four quarters ending December 2024. The comprehensive report, a key tool in monitoring global economic practices, found none of the major economies deliberately devaluing their currency to boost exports to the United States.

The report, which is a requisite submission to Congress, closely examines the foreign exchange strategies of U.S. trading partners, focusing on those with significant trade surpluses with the U.S. or substantial global current account surpluses. Based on these criteria, China, Japan, South Korea, Singapore, Taiwan, Vietnam, Germany, Ireland, and Switzerland have been placed on a monitoring list. Ireland and Switzerland were recent additions due to their large bilateral trade surplus with the U.S. and significant global current account surplus.

While China is not officially labeled as a currency manipulator despite pressures leading to the depreciation of the yuan, it remains a country of concern. The Treasury highlights China's lack of transparency regarding its exchange rate practices and policies. Officials warn that if evidence surfaces of China intervening through official or informal channels to resist yuan appreciation, China could still face possible designation in future assessments.

The semi-annual report falls under the requirements of the Omnibus Trade and Competitiveness Act of 1988 and the Trade Facilitation and Trade Enforcement Act of 2015. These statutes mandate that the Treasury Department scrutinizes and assesses currency practices worldwide to identify instances of potential manipulations that may impact fair trade.

Though rare and politically sensitive, designating a country as a currency manipulator requires enhanced analysis and can lead to high-level negotiations and possible sanctions if corrective actions are not taken. The report not only serves as a tool for identifying currency manipulation but also offers insights into broader global economic trends, foreign currency movements, capital flows, and the policy frameworks of key U.S. trading partners.