U.S. places Mexico on list of countries under foreign exchange watch list

17/04/2021

The U.S. Treasury Department on Friday placed Mexico and Ireland on a list for close monitoring of their foreign exchange operations, while disposing of Vietnam, Switzerland, and Taiwan under the 2015 local law against currency manipulation.

The Treasury said it added 11 countries in total to the foreign exchange system watch list, paying particular attention to their foreign exchange market interventions.

Among the nations included in the watch list are major trading partners of the U.S. nation, such as Germany, Italy, India, Malaysia, Singapore, Ireland, China, Japan, South Korea, Mexico, and Thailand.

All, with the exception of Ireland and Mexico, were already listed in a December 2020 report sent to Congress.

The U.S. government said it will continue to maintain contacts on the issue with Vietnam and Switzerland and will begin dialogues with Taiwan. Despite its resolution, it stated that there is insufficient evidence under the previous 1988 law to conclude that Vietnam, Switzerland, or Taiwan were manipulating their currencies.

The Treasury also urged China to improve the transparency of its exchange rate platforms in relation to its monetary policy objectives.

By Mexicanist