Thailand and Taiwan may entering to the United States watchlist for currency manipulation
Thailand and Taiwan may be added to the US currency manipulation list after all criteria set by the Treasury, according to UBS Group AG, are met. A country is included if it meets at least two of those indicators:
The trade surplus with the United States is at least $ 20 billion;
A current account surplus of at least 2% of gross domestic product;
Permanent unilateral currency intervention is equivalent to 2% of GDP for six months a year.
USB analysis shows that Taiwan and Thailand now meet all three criteria, for this, they have broken the $ 20 billion mark, but their currencies are still not stable and weakened against the dollar. In the latest report, the US also abandoned the designation of China as a currency manipulator, as the world’s second-largest economy made “binding commitments” not to devalue the yuan. Switzerland was added to the watchlist, while China, Japan, Korea, Germany, Italy, Ireland, Singapore, Malaysia, Vietnam were retained, as reported Bloomberg.