The U.S. Treasury has increased its oversight of global foreign exchange practices, broadening its analysis to include interventions aimed at both weakening and strengthening currencies against the dollar. This move, outlined in its latest currency report, did not result in any major trading partner being identified as a currency manipulator.
According to the semi-annual review covering the second half of 2024 and the first six months of 2025, no significant U.S. trading partner satisfied all three benchmarks required for advanced scrutiny of currency activities. However, Thailand was newly added to the Treasury’s monitoring list due to a rising global current account surplus and a growing trade surplus with the United States.
Thailand’s inclusion brings the total number of monitored economies to ten, joining China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland. The Treasury’s review has largely centered on whether countries intervene unilaterally in currency markets to stifle appreciation versus the dollar, a measure that can keep exports competitively priced.
The next currency report, scheduled for release in November, will review developments in the second half of 2025.
The official further noted that the Treasury aims to assess whether interventions to prevent local currency depreciation are applied as strongly as those to curb appreciation. In Japan’s case, authorities have employed communication strategies to bolster the yen, steering clear of widespread direct intervention.
For the countries remaining under surveillance, the Treasury plans further examination of broader government financial measures that could influence currency valuations—such as capital controls, macroprudential regulation, or the use of state-run investment funds and pension reserves. Additionally, the report states that the Treasury will analyze the use of foreign exchange swaps designed to neutralize spot market activity, as well as the net forward currency positions held by trading partners.
Despite ongoing downward pressure on the Chinese yuan, the Treasury refrained from classifying China as a currency manipulator, thereby avoiding an intensification of trade friction. Nevertheless, the Treasury cited persistent concerns over the opacity of China’s foreign exchange policy, reiterating language from its previous report issued in June 2025.
