Treasury's Watchful Eye: U.S. Trading Partners & Currency Practices in Focus for 2025

The U.S. Treasury Department reports no manipulation of currency by major trading partners in 2025. However, ten, including China, Japan, and Germany, remain on the monitoring list for potential exchange rate issues. The criteria for monitoring include significant bilateral trade surplus, material current account surplus, or persistent, one-sided market interventions.

In a recent analysis, the U.S. Treasury Department revealed that no major trading partner manipulated currencies to gain an unfair trade advantage in 2025. Nonetheless, it kept ten leading economies under enhanced scrutiny for potential currency practice concerns.

Among those on the 'monitoring list' are China, Japan, Korea, and Germany, indicating persistent scrutiny due to significant bilateral trade surpluses, material current account surpluses, and potential one-sided currency market interventions. This marks a continuation from prior years, maintaining vigilance on these nations' economic policies.

While some countries met fewer criteria, like Thailand, Singapore, and Switzerland, relaxing concerns temporarily, the Treasury broadens its focus. It now observes efforts to resist depreciation pressure, indicating a shift towards a more balanced monitoring approach of currency practices.