Currency Games: U.S. Treasury's Final Report Under Biden

The U.S. Treasury Department reported no major trading partner manipulated its currency up to June 30, 2024. While Vietnam and Switzerland were labeled manipulators in 2020, recent interventions aimed to strengthen currencies to combat inflation. Seven countries remain on the monitoring list for foreign exchange scrutiny.

The U.S. Treasury Department announced in its final currency report under President Biden that no major trading partners manipulated their currency over the year ending June 30, 2024. This news precedes the transition of foreign exchange oversight to the incoming administration of President-elect Donald Trump.

During his tenure, Trump criticized the impact of the strong dollar on trade competitiveness, labeling Vietnam and Switzerland as currency manipulators in 2020 due to their market interventions. However, the past four years saw a general trend towards strengthening currencies against the dollar to mitigate inflationary pressures.

The latest Treasury report highlighted that none of the major U.S. trading partners met all criteria for enhanced currency practice scrutiny, a process that can result in trade sanctions. Seven nations, including China and Germany, remain under observation for foreign exchange practices, emphasizing the need for transparency and ongoing analytical efforts.

(With inputs from agencies.)