US Treasury Expands Currency Monitoring List to Nine: What It Means for Global Markets and Trade Partners

What Happened on June 5, 2025? US Treasury’s Latest Currency Report

Did you hear the news? On June 5, 2025, the US Treasury released its much-anticipated semiannual report on the currency practices of America’s major trading partners. This time, the headline wasn’t about labeling anyone a currency manipulator, but rather about expanding the so-called monitoring list to a total of nine countries. Ireland and Switzerland joined the list, which already included China, Japan, South Korea, Taiwan, Singapore, Vietnam, and Germany. The move comes as the Trump administration signals a tougher stance on trade and currency issues, aiming to protect US economic interests and manufacturing jobs.
For those following global economics, this list matters. It’s not just about politics—it’s about how currencies move, how trade flows shift, and how countries respond to US pressure. The Treasury’s decision reflects ongoing concerns about large trade and current account surpluses, as well as the risk of one-sided currency interventions that could disadvantage American exporters.
So, what does this all mean for investors, policymakers, and anyone curious about the global economy? Let’s dive into the details and explore the cultural and strategic context behind these moves.

Who Made the List? The Nine Countries Under US Scrutiny

Curious about who’s on the list? Here are the nine countries the US Treasury is watching closely: China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland. Most of these economies are export powerhouses, and many have been on the list for years. Ireland and Switzerland are the latest additions, flagged for their significant trade and current account surpluses with the US.
China remains a focal point, not only because of its size but also due to persistent questions about the transparency of its exchange rate policies. The Treasury stopped short of labeling China a manipulator this time, but issued a stern warning about future scrutiny if evidence of intervention emerges. Japan, meanwhile, has intervened in currency markets several times recently to support the yen, while South Korea’s current account surplus has grown sharply, drawing renewed attention.
For many of these countries, being on the list doesn’t mean they’re guilty of wrongdoing, but it does put them under a spotlight. It’s a signal that the US expects more transparency and fair play in currency markets.

Why Does the US Care? The Criteria for Currency Monitoring

Ever wondered how a country gets on the US Treasury’s radar? The answer lies in three main criteria: a bilateral trade surplus with the US of at least $15 billion, a global current account surplus exceeding 3% of GDP, and persistent, one-sided net foreign exchange purchases. If a country meets at least two of these thresholds, it’s automatically added to the monitoring list.
This approach dates back to the Obama administration in 2016 and was formalized under the Trade Facilitation and Trade Enforcement Act of 2015. The goal is to identify countries whose currency practices might give them an unfair advantage in international trade. For the US, it’s about leveling the playing field and ensuring that American workers and companies aren’t disadvantaged by foreign exchange interventions.
But the process isn’t just about numbers. It’s also about politics, negotiation, and the broader context of global trade. Countries on the list often find themselves under pressure to explain their policies, engage in dialogue with US officials, and sometimes adjust their practices to avoid further escalation.

China in the Spotlight: Transparency, Tensions, and Trade Talks

Let’s talk about China. The world’s second-largest economy has been on the US monitoring list since 2016, and for good reason. While the Treasury didn’t label China a manipulator this time, it did criticize Beijing for a lack of transparency in its exchange rate policies. That’s a big deal, especially as the US and China are locked in ongoing trade negotiations and tariff disputes.
President Trump’s administration has made it clear that it won’t tolerate macroeconomic policies that create imbalances in the US-China relationship. In fact, Trump recently announced a temporary reduction in tariffs on Chinese goods, signaling a willingness to negotiate—but also a readiness to reimpose penalties if talks stall.
For investors and market watchers, this dynamic creates uncertainty. Currency markets have already seen significant volatility, with the yuan facing depreciation pressure and the US dollar remaining strong. The risk of future intervention or escalation is real, and both sides are keeping their options open.

Japan, South Korea, and Taiwan: Export Giants Under Pressure

Did you know that Japan, South Korea, and Taiwan are also on the US Treasury’s monitoring list? These countries are major players in global supply chains, especially in semiconductors, automobiles, and electronics. All three have faced pressure to let their currencies appreciate, which could make their exports less competitive.
Recently, Japan’s finance ministry intervened in the currency market multiple times to support the yen, citing exceptional circumstances. South Korea’s current account surplus surged to 5.3% in 2024, up from 1.8% the previous year, driven by strong goods exports. Taiwan, meanwhile, has faced US scrutiny for sustained foreign exchange purchases.
For these economies, the stakes are high. A stronger currency can hurt exports, but staying on the US list can bring diplomatic and economic headaches. Many are now weighing their options as trade talks with the US continue.

Ireland and Switzerland: Why Were They Added?

Ireland and Switzerland might not be the first countries you think of when it comes to currency disputes, but both have landed on the US Treasury’s radar. Ireland’s inclusion is tied to its large trade and current account surpluses with the US, reflecting its role as a hub for multinational corporations and tech giants. Switzerland, meanwhile, was previously removed from the list in late 2023 but has been reinstated due to similar concerns.
Switzerland’s central bank has a history of intervening in currency markets to prevent the Swiss franc from appreciating too quickly, which can hurt its export sector. The US Treasury has acknowledged these interventions but stopped short of calling Switzerland a manipulator, opting instead for dialogue and monitoring.
For both countries, being on the list means more engagement with US officials and a need to justify their policies. It’s a reminder that even smaller economies can have a big impact on global trade dynamics.

Market Reactions and Daily Currency Fluctuations

How did the markets react to the Treasury’s announcement? In the immediate aftermath, currency markets saw increased volatility, especially for the yen, won, and yuan. The Japanese yen strengthened briefly after news of Japan’s interventions, while the South Korean won also saw a bump as traders speculated about future policy moves.
The Chinese yuan remained under pressure, reflecting concerns about ongoing trade tensions and the risk of future US action. Meanwhile, the Swiss franc and the euro saw modest gains, as investors interpreted the Treasury’s report as a sign of continued scrutiny but not immediate escalation.
For investors, these daily price swings are a reminder that currency policy isn’t just about long-term trends—it’s also about how governments and central banks respond to news, data, and diplomatic developments. Staying informed and agile is key in such a dynamic environment.

Cultural and Strategic Context: Why This Matters for Investors

Let’s step back and think about the bigger picture. Currency monitoring isn’t just a technical issue—it’s deeply tied to the cultural and strategic priorities of each country. For the US, it’s about protecting jobs, manufacturing, and global leadership. For export-driven economies like Japan, Korea, and Taiwan, it’s about maintaining competitiveness and navigating complex relationships with Washington.
In Europe, countries like Ireland and Switzerland must balance their roles as financial hubs with the demands of global trade partners. China, meanwhile, faces the dual challenge of supporting economic growth while managing external pressures and internal reforms.
For investors and market participants, understanding these cultural and strategic dynamics is crucial. It helps explain why countries act the way they do, how they negotiate, and what might happen next. The US Treasury’s monitoring list is just one piece of a much larger puzzle, but it’s a piece that can move markets and shape the future of global trade.