BANGKOK, THAILAND – The United States added Thailand to its expanded watchlist for potential currency distortions while stopping short of formally accusing any major trading partner of manipulation.
Thailand added to US monitoring list
The US Treasury said in its latest semi-annual currency report that no significant trading partner met all three criteria for designation as a currency manipulator during the second half of 2024 and the first six months of 2025. At the same time, Thailand was newly placed on the so‑called monitoring list, justified by its growing global current account surplus and its trade surplus with the United States. With Thailand’s inclusion, the list covered ten economies, joining China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland and Switzerland.
Wider scrutiny of foreign exchange interventions
The report underlined that Washington broadened its analysis of foreign exchange market interventions. Until now, the focus had been on whether countries unilaterally prevented their currencies from appreciating against the US dollar in order to make exports cheaper. Going forward, the department said it would more symmetrically assess whether governments respond as decisively to depreciation pressure as they do to appreciation pressure and would monitor more broadly how countries that “smooth” exchange rate movements act to counter depreciation compared with limiting appreciation.
Officials stress changes not aimed at one country
A senior US official said the adjustment was not directed at any single country. The official added that the changes were intended to improve the analysis in future reporting periods, particularly if the dollar weakened against major currencies. The next report was scheduled for November and was set to cover the second half of 2025.
Criteria and political stakes
The Treasury pointed to three main criteria for assessing currency practices: a bilateral trade surplus with the United States of at least 15 billion dollars, a global current account surplus of more than 3% of gross domestic product, and persistent, one‑sided foreign exchange purchases of at least 2% of GDP. Countries that met two of the three benchmarks were automatically placed on the monitoring list. A formal manipulator label was described as politically explosive because it could intensify trade tensions.
China criticized over lack of transparency
Despite ongoing depreciation pressure on the yuan, the Treasury did not designate China as a currency manipulator, avoiding further escalation in strained relations with Beijing. At the same time, the department issued sharp criticism of what it called weak transparency in China’s exchange rate policy, saying the country stood out among major trading partners for its lack of disclosure.
“This lack of transparency will not prevent the Treasury from naming China at a later date if the available evidence indicates interventions – formal or informal – aimed at preventing an appreciation of the yuan,”
said the Treasury in the report.
Broader tools under review for all watchlist economies
For all economies on the monitoring list, the US Treasury announced a wider review of other policy instruments that could influence foreign exchange markets. These included capital controls, macroprudential measures, and the use of state investment vehicles or pension funds. The United States also planned closer analysis of how countries used FX swaps to sterilize spot market operations and cushion their impact on domestic monetary conditions, as well as the net forward positions of trading partners.
Thai baht policy under new pressure
Against this backdrop, debate over exchange rate policy in Bangkok gained in importance. The Bank of Thailand had recently voiced concern about a rapid appreciation of the baht and announced that it would take measures in response.