The US Treasury Department labeled Switzerland and Vietnam as “currency manipulators” yesterday in its semi-annual report to congress. The report accuses both nations of devaluing their currencies, with Vietnam doing so to gain an unfair trade advantage (by artificially lowering the price of Vietnamese goods) and Switzerland doing so to prevent a spike in its currency value (amid increased demand for the “safe haven” asset). The designation is expected to trigger negotiations between the US and each country over the next year and could potentially lead to sanctions or tariffs in the future.
Extra: The rarely-used currency manipulator designation was most recently applied to China (last August) before being removed in January.
The New Paper
This story is from the December 17, 2020 edition of The New Paper – a clear, concise daily briefing that makes fact-first news easy to consume. Try it today.
