U.S. Department of the Treasury Strengthens Oversight of Global Forex Transactions

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Significant steps have been announced by the U.S. Department of the Treasury to enhance monitoring of currency exchange activities in the global market. This initiative is specifically designed to prevent unwarranted depreciation of national currencies against the U.S. dollar, reflecting a commitment to maintaining stability in the international forex market.

Evaluation Standards and Monitoring Criteria

In its latest semi-annual currency valuation report, the Department of the Treasury explains that no major trading partners are currently accused of intentionally manipulating exchange rates. Furthermore, in-depth analysis shows that none of the main trading partners meet all three standard criteria set for further investigation regarding currency trading practices during 2024-2025.

The assessment standards used by the department are comprehensive, considering various macroeconomic indicators and bilateral trade behaviors to determine whether a country warrants special attention in exchange rate management.

Expanded Watchlist with the Addition of Thailand

A significant development occurred with the inclusion of Thailand in the department’s official watchlist. This decision is based on observations of a continuously increasing global current account surplus and a substantial bilateral trade surplus with the United States.

Following Thailand’s addition, the department’s watchlist now includes ten economies that are regularly monitored. Countries still under close surveillance include Japan, South Korea, Vietnam, Ireland, and Switzerland, along with several other economies. Each country on this list is closely monitored regarding their exchange rate policies and practices.

Significance of Monitoring Policy

The department’s efforts to strengthen global oversight reflect ongoing concern for fair trading practices and the stability of international currency markets. With a systematic approach based on clear criteria, the department ensures that evaluations of forex practices are conducted objectively and transparently, without bias toward any trading partner.

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