(Oct 24): Asia is bracing for the latest US Treasury report on foreign currency manipulators, coming in the middle of a trade war that shows no sign of ending.
The twice-yearly report is due in coming weeks and will likely see the return of Singapore, Malaysia and Vietnam on the watchlist. The three Southeast Asian nations were cited in the May report for the first time, and the Treasury says it keeps newcomers on the list for at least two straight reports. China -- which was formally labeled a currency manipulator in August -- Japan and South Korea were the other Asian economies cited at the time.
A country makes it on the watchlist if it’s met two of three criteria: a trade surplus with the U.S. of at least US$20 billion ($27.2 billion); a current-account surplus of a minimum of 2% of gross domestic product; and persistent, one-sided intervention in the currency equivalent to 2% of GDP in six months of a year.