Taiwan Remains on U.S. Currency Monitoring List, Not Labeled Manipulator

Taiwan has once again been placed on the U.S. Treasury Department's currency "monitoring list," although it has not been designated as a currency manipulator. This list includes ten major trading partners whose exchange rate policies are under close observation by the United States.

In its latest semi-annual report, the U.S. Treasury stated that no major trading partners used currency manipulation to gain an unfair competitive advantage in 2025. However, Taiwan, along with China, Japan, South Korea, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland, remain on the monitoring list. These economies were also included in the previous January report.

The U.S. Treasury monitors countries based on criteria outlined in trade acts. Countries are placed on the monitoring list if they meet two of three criteria: a significant bilateral trade surplus with the U.S., a large current account surplus, and persistent one-sided intervention in the foreign exchange market. The report noted that Thailand, Singapore, and Switzerland currently meet only one of these criteria and could be removed from the list in the future if they do not meet the threshold in the next report.

Furthermore, the U.S. Treasury has broadened its monitoring scope. Previously, the focus was primarily on whether countries prevented their currencies from appreciating to maintain export competitiveness. The updated approach now also assesses whether economies take measures, such as smoothing exchange rate volatility, to prevent their currencies from depreciating, thereby expanding oversight of currency policies.