The U.S. Department of the Treasury has released its semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. The report, covering the four quarters through December 2023, reviewed and assessed the policies of major U.S. trading partners, which account for approximately 78 percent of U.S. foreign trade in goods and services.
In accordance with the Omnibus Trade and Competitiveness Act of 1988, the report analyzed practices among these trading partners and concluded that none manipulated their currency exchange rates against the U.S. dollar to prevent effective balance of payments adjustments or gain unfair competitive advantages in international trade during this period.
The report also found that no major trading partner met all three criteria for enhanced analysis under the Trade Facilitation and Trade Enforcement Act of 2015 during this timeframe.
“The Biden Administration strongly opposes attempts by the United States’ trading partners to artificially manipulate currency values to gain unfair advantage over American workers,” stated Secretary of the Treasury Janet L. Yellen. “Treasury continues to promote policies that support stronger and more balanced global growth that benefits American workers, including through close engagement with major trading partners on currency-related issues.”
Seven economies are listed on Treasury’s “Monitoring List” due to their currency practices and macroeconomic policies: China, Japan, Malaysia, Singapore, Taiwan, Vietnam, and Germany.
The report reiterated Treasury’s call for increased transparency from China regarding its foreign exchange interventions and broader exchange rate policy features. China’s lack of transparency makes it an outlier among major economies and warrants close monitoring by Treasury.
This report is submitted to Congress pursuant to Section 3005 of the Omnibus Trade and Competitiveness Act of 1988 (22 U.S.C. § 5305) and Section 701 of the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. § 4421).
Find the full report here.
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