America classifies Switzerland and Vietnam currency manipulators

On Wednesday, the US Treasury designated Switzerland and Vietnam currency manipulators, and added three new names to a watchlist of countries suspected of taking steps to depreciate their currencies against the dollar.

In what may be one of the recent crackdowns on international trade partners from the outgoing administration of President Donald Trump, the US Treasury said that over the year to June 2020, Switzerland and Vietnam intervened heavily in exchange markets to prevent changes in the balance of payments.

In response to the US Treasury's allegations, the Swiss National Bank said it is not manipulating its currency and that its monetary approach will not change, adding that it “remains ready to intervene more aggressively in the foreign exchange market.”

Vietnam's Ministry of Trade declined to comment and referred questions to the Foreign Ministry.

The semi-annual US currency manipulation report said that Vietnam’s interventions in the foreign exchange market were at least partly aimed at devaluing the local dong currency to gain a trade advantage, and that at least part of the Swiss moves were aimed at reducing the franc to prevent changes in the balance of payments.

The Treasury said it had added to its "watch list" Taiwan, Thailand and India. And that list already includes China, Japan, South Korea, Germany, Italy, Singapore and Malaysia.