South Korea has been removed from the U.S.' currency policy-monitoring list.

The U.S. Treasury on Tuesday released its semi-annual report on the foreign exchange policies of major trade partners to determine which merit scrutiny based on three thresholds, with countries exceeding all three subject to intensive analysis while those in breach of two are monitored.

The criteria consist of a trade surplus with the U.S. of at least 15 billion dollars, a material current account surplus of at least three percent of the country’s gross domestic product(GDP), and persistent net foreign currency purchases of at least two percent of the GDP over a year.

Based on the four quarters through June 2023, the monitoring list saw the addition of Vietnam, while Switzerland was removed along with South Korea, which only exceeded the trade surplus threshold.

The Treasury's report said that no major trading partners manipulated the rate of exchange between its currency and the U.S. dollar.