China escapes the manipulation label - ANZ

Khoon Goh, Head of Asia Research at ANZ, notes that the US Treasury has not labelled any country a currency manipulator in its latest semi-annual report which means that China has managed to escape the currency manipulator tag.

Key Quotes

“There has been no change in the criteria used by the US Treasury, though the threshold for persistent FX intervention has been expanded.”

“Despite China only meeting one out of the three criteria, it remains in the monitoring list alongside Japan, South Korea, Taiwan, Germany and Switzerland.”

“The list of major trading partners that the US Treasury assesses has not been expanded from the top 12. Therefore, Thailand, which meets two of the three criteria, has been spared from the monitoring list.”