U.S. Treasury's Watchful Eye: No Currency Manipulators, But Concerns Linger

The U.S. Treasury Department announced in its inaugural currency report under President Donald Trump's new administration that no major trading partner manipulated its currency in 2024. However, the department cautioned China over its lack of transparency regarding exchange rate policies. Ireland and Switzerland were added to the monitoring list for extra scrutiny.

The report highlights persistent concerns about China's currency practices, yet stops short of labeling China a currency manipulator despite depreciation pressures on the yuan. Treasury warned that any evidence of China's currency intervention could lead to future designation.

With the addition of Ireland and Switzerland, the Treasury's monitoring list rose to nine countries, each meeting specific trade and account surplus criteria. Released shortly after Trump's conversation with China's leader Xi Jinping, the report underscores ongoing economic tensions between the U.S. and China.

(With inputs from agencies.)