No major trading partner manipulated its currency: The US Treasury issued its November 2024 report “Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States,” (the Report), which reviews the four quarters through June 2024 (the review period). In this report, the US Treasury found that no major trading partner met all three criteria (significant bilateral trade surplus with the US, material current account surplus, and persistent, one-sided foreign exchange intervention) under the Trade Facilitation and Trade Enforcement Act of 2015 (the 2015 Act) or engaged in conduct of the kind described in Section 3004 of the 1988 Act (currency developments, exchange rate practices, foreign exchange reserve coverage, capital controls, and monetary policy) during the review period. 

Vietnam remains on the US Currency Monitoring List: In line with our expectation mentioned in our Macro Note published on June 24, 2024, Vietnam remains on the Treasury’s Monitoring List (currency manipulator watchlist) in the review period along with six other economies: China, Japan, Taiwan, Singapore, Germany, and South Korea (Malaysia was removed and South Korea was added).

Vietnam exceeded two of the three criteria under the 2015 Act: Vietnam continued exceeding two of the three criteria under the 2015 Act, which are “significant bilateral trade surplus with the United States” and “material current account surplus” in this review period.

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