US Treasury Keeps China and Nine Others on Currency Watchlist

July 24, 2026
By Mintesinot Nigussie

The US Treasury has kept China, Japan and eight other economies on its currency monitoring list, citing the need for closer scrutiny of exchange rate policies and macroeconomic practices among major trading partners. In its latest semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, the Treasury said no major US trading partner manipulated its currency to prevent balance of payments adjustments or gain an unfair competitive advantage in international trade during the four quarters through December 2025.

The monitoring list includes China, Japan, South Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland and Switzerland. All 10 economies were also included in the previous report issued in January 2026. The Treasury said none of the economies assessed met all three criteria for enhanced analysis under the Trade Facilitation and Trade Enforcement Act of 2015, which evaluates factors including persistent trade surpluses, current account imbalances and sustained one-way foreign exchange intervention.

China remained a particular focus of the report despite not being designated as a currency manipulator. The Treasury said the country continued to stand out because of limited transparency surrounding its exchange rate policies and practices. The department said a lack of transparency would not prevent a future designation if available evidence indicates that China is using formal or informal measures to resist appreciation of the renminbi.

“For decades, unfair currency practices abroad have contributed to the U.S. trade deficit and the hollowing out of U.S. manufacturing employment,” US Treasury Secretary Scott Bessent said, adding that the department would continue monitoring foreign exchange intervention and non-market policies that could affect trade competitiveness.

Source: FSX Business News