The US Treasury Department released its semi-annual foreign exchange report on July 23, 2026, stating that no major US trading partner manipulated their currency in 2025 to gain unfair trade advantages [1, 2, 3]. The report maintained 10 economies on the Treasury’s monitoring list for close scrutiny of their currency and macroeconomic policies: China, Japan, South Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland [1, 2, 3].
Economies are placed on this list if they meet at least two of three criteria set by a 2015 law: a significant bilateral trade surplus with the US, a material current account surplus, and persistent one-sided intervention in foreign exchange markets [1, 2, 4]. Thailand, Singapore, and Switzerland met only one criterion each in this report and may be removed in the next update if they slip below two criteria [3, 4].
China remains under careful watch due to a "relative lack of transparency" in its currency management compared to other trading partners [1, 2, 3]. While the Treasury did not label China a currency manipulator in 2025, it warned such a designation could occur if future evidence shows intervention to resist appreciation of the yuan (RMB) [1, 2, 3, 5]. The International Monetary Fund and German Chancellor Friedrich Merz have noted that the yuan remains undervalued, which boosts Chinese export competitiveness [1, 2].
Taiwan also remained on the list. The Taiwan central bank said it has maintained smooth communication with the US Treasury on currency matters, noting that "双方将在良好互动的基础上，继续就宏观经济和汇率政策等议题交换意见" (both sides will continue to exchange views based on good interaction) [6, 7]. Taiwan’s outward direct investment rose to $340 billion in 2025 from $210 billion in 2024, indicating growing cross-border economic activity [6].
Starting in 2026, the Treasury expanded its monitoring to assess whether countries smooth exchange rate volatility to resist depreciation as well as appreciation [4, 7, 8]. US Treasury Secretary Scott Bessent said, "Treasury is committed to aggressively and vigilantly monitoring and combatting unfair currency practices" [1].
The July 2026 report covers the second quarter of 2025 through the first quarter of 2026 and follows a previous report in January that listed the same 10 economies without designating any new currency manipulators [1, 4]. In June 2025, US Senators Rick Scott and Elizabeth Warren had urged the Treasury to label China a currency manipulator, but no such designation was made [1, 9].
The next Treasury currency report will be released in early 2027, when changes to the monitoring list will be reassessed based on the updated criteria and recent data.
