U.S. Treasury Classifies Switzerland as Currency Manipulator

The U.S. Treasury designated Vietnam, and Switzerland as currency manipulators, adding new names, such as Taiwan, Thailand and India to its watch list for countries, which devalue their currencies against the dollar.

The Treasury Department said that until June 2020, both Switzerland and Vietnam intervened in the currency markets to prevent effective balance of payments adjustments, as well as obtaining an unfair competitive advantage in international trade.

The measure comes as the global coronavirus pandemic distorts trade flows and widens the US trade deficit.

Countries classified as manipulators must have at least $20 billion in trade surplus, with foreign currency intervention of more than 2% of gross domestic product and a global current account surplus exceeding 2% of GDP.

The U.S. Treasury also said its “monitoring list” of countries that meet some of the criteria has grown to 10 with the additions of Taiwan, Thailand and India.

Others on the US watch list include China, Japan, Korea, Germany, Italy, Singapore and Malaysia.

Moreover, India and Singapore had interfered in the foreign exchange market as well, yet, in a 'sustainable and unequal manner', according to the U.S. Treasury.