China has been given a clean chit by the US Treasury with regard to currency manipulation concerns.

The Treasury said it found none of its major trading partners to be involved in currency manipulation for the purpose of gaining an edge for exports. However, China still remains on the "monitoring list" consisting of countries with current market interventions or external surpluses.

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The US Treasury added Switzerland to the list, which also contains Japan, Taiwan, Germany, South Korea and China. The Treasury revealed, though, that none of the countries warranted enhanced enquiry. The list was launched in pursuance of a trade enforcement law.

According to the criteria set by the currency monitoring list, China's performance showed improvement since the release of the previous report in April. At present, China only falls short of one criteria, which is related to trade surplus. China's bilateral trade surplus with the United States stands at $356 billion, which is shy of threshold of three percent of gross domestic product.

China has devaluated yen twice during the monitoring period. But, the US Treasury said it is not tantamount to persistent intervention.

China may be dropped off the list next April if it maintains its current account surplus that is below the threshold limit. Additionally, it also should stay away from actively keeping the yuan value down.

China bought $570 billion in foreign currency assets in the 12-month period ending in August. The purchases were done to halt the step devaluation of the currency. The last time China was labeled currency manipulator was in 1994, under the presidency of Bill Clinton.

TagsUS Treasury, Switzerland, Bill Clinton