The U.S. Treasury Department designated Switzerland and Vietnam as currency manipulators for the first time, while keeping China on a watch list, in the Trump administration’s final foreign-exchange policy report.
Having removed the manipulator label from China in January, the Treasury urged the world’s second-largest economy to “improve transparency” in its currency management, especially of its central bank’s relationship with state-owned banks — which market participants say can act in the currency market with official guidance.
Switzerland was judged to have intervened in the currency market by more than was necessary to address financial-market volatility earlier this year. Vietnam also ran afoul for restraining currency appreciation at a time of rising trade surpluses with the U.S. But the Biden administration may make a different assessment next year.