US Treasury Department determines Vietnam is not manipulating currency

SGGPO 11/08/2023 20:16

The US Treasury Department determined that Vietnam does not manipulate currency and made positive comments on the results of Vietnam's monetary and exchange rate policy management.

US Treasury Department determines Vietnam is not manipulating currency

According to the State Bank of Vietnam (SBV), on November 7, 2023, the US Treasury Department issued a report on “ Macroeconomic and foreign exchange policies of major US trading partners”, continuing to determine that Vietnam does not manipulate currency, and at the same time gave positive comments on the results of Vietnam's monetary and exchange rate policy management. The US Treasury Department considers the possibility of currency manipulation by major US trading partners based on three criteria: bilateral trade surplus with the US, current account surplus, and one-sided, prolonged intervention in the foreign exchange market.

Accordingly, the US Treasury Department put 6 economies on the Monitoring List, including: China, Germany, Malaysia, Singapore, Taiwan and Vietnam. Of which, Vietnam exceeded 2 criteria: bilateral trade surplus in goods and services with the US (reaching 105 billion USD, exceeding the threshold of 15 billion USD) and current account surplus (reaching 19 billion USD, equivalent to 4.7% of GDP, exceeding the threshold of 3% of GDP).

The State Bank of Vietnam said that in recent bilateral meetings with this agency, the US Treasury Department highly appreciated Vietnam's monetary and exchange rate policy management because it demonstrated Vietnam's seriousness in addressing US concerns and maintaining stability in the financial, monetary, and macroeconomic markets in the context of many difficulties and challenges.

In the joint statement on upgrading Vietnam-US relations to a comprehensive strategic partnership, the US also appreciated Vietnam's continuous efforts in continuing to modernize and further enhance the transparency of Vietnam's monetary and exchange rate policy framework, promoting macroeconomic stability, and ensuring the safety and soundness of the banking system.

“On the basis of the Comprehensive Strategic Partnership between the two countries, the SBV will continue to coordinate with ministries and branches to maintain close cooperation and establish regular and effective communication channels with the US Treasury Department; thereby, enhancing understanding, promoting cooperation, sharing information and promptly resolving arising issues of mutual concern,” the SBV informed.

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