Taipei: The United States has decided to keep Taiwan on its latest list of countries under surveillance for potential currency manipulation. This decision was outlined in the U.S. Treasury's semi-annual report on the "Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States."

According to Focus Taiwan, the U.S. Treasury Department emphasized that Taiwan is one of the ten trading partners whose "currency practices and macroeconomic policies merit close attention." Alongside Taiwan, the list includes China, Japan, Korea, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. These countries were also listed in the January 2026 report.

The U.S. Treasury employs three specific criteria to evaluate if its trading partners should be classified as currency manipulators. These criteria include maintaining a trade surplus with the U.S. of at least US$15 billion, having a current account surplus of at least 3 percent of GDP, and consistently intervening in the foreign exchange market with net purchases of foreign currency constituting at least 2 percent of GDP.

For countries meeting only one of these criteria in two consecutive U.S. currency reports, removal from the monitoring list is possible. Conversely, nations fulfilling all three criteria may be designated as currency manipulators.

In its latest findings, the U.S. Treasury reported that no major trading partner satisfied all three criteria for enhanced scrutiny under the Trade Facilitation and Trade Enforcement Act of 2015 during the four quarters ending in December 2025. However, Taiwan did meet two of the criteria: a significant trade surplus with the U.S. and a notable current account surplus.

The report highlighted that Taiwan's substantial current account surplus grew further during the review period, primarily due to robust global demand for technology products. Similarly, its bilateral trade surplus with the U.S. saw a significant rise.

Taiwan's current account surplus increased to 19.6 percent of GDP in 2025 from 14.1 percent in 2024. The goods and services surplus with the U.S. nearly doubled in 2025, rising by US$72 billion to reach US$145 billion. However, Taiwan fell short on the currency manipulation criterion, reporting net foreign exchange purchases of US$7.7 billion, which is about 0.8 percent of its GDP.

The U.S. Treasury noted that Taiwan's official disclosures regarding its foreign exchange net purchases were generally in line with Treasury estimates. The report also examined Taiwan's currency practices, noting that the central bank's interventions were primarily aimed at moderating the rapid appreciation of the Taiwan dollar against the U.S. dollar. Additionally, the central bank conducted smaller net sales of the greenback in certain months to alleviate upward pressure on the U.S. dollar during 2025.