Home News Currencies

Singapore remains on US currency manipulation watchlist despite Vietnamese and Swiss reprieve

Ng Qi Siang
Ng Qi Siang 4/21/2021 11:33 AM GMT+08  • 3 min read
Singapore remains on US currency manipulation watchlist despite Vietnamese and Swiss reprieve
Thailand is perhaps under greater risk of scrutiny by the US than Singapore or Malaysia, says the CGS-CIMB team.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

There was perhaps a sigh of relief in Hanoi and Berne as the US Treasury reversed the Trump administration’s decision to label both Vietnam and Switzerland as currency manipulators. But while the Biden administration chose not to label any country as a currency manipulator this time, Thailand, Malaysia and Singapore remain on its watchlist.

Under US Treasury definitions, a currency manipulator is defined as a state with persistent, one-sided FX market interventions with net purchases of foreign currency conducted in 6 out of a 12-month review period and totalling 2% of GDP. Such economies should also have a current account surplus exceeding 2% of GDP and a bilateral trade surplus with the US exceeding US$20 billion ($26.6 billion) over the review period.

“By this definition, Switzerland, Taiwan and Vietnam would have qualified, but instead they have been placed under a less onerous regime of “enhanced engagement”,” note CGS-CIMB economists Michelle Chia, Lim Yee Ping and Terence Lee. Since 1988, only three countries have been labelled currency manipulators - China, Japan and Taiwan.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.