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The US Treasury Department has determined that Vietnam does not manipulate its currency, and has given positive feedback on the results of Vietnam's monetary and exchange rate policy management.
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| The US Treasury Department has determined that Vietnam does not manipulate its currency. |
According to the State Bank of Vietnam (SBV), on November 7, 2023, the US Department of Treasury issued a report on " Macroeconomic and Foreign Exchange Policies of Major US Trading Partners," continuing to affirm that Vietnam does not manipulate its currency, while also giving positive comments on the results of Vietnam's monetary and exchange rate policy management. The US Department of Treasury 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 unilateral and prolonged foreign exchange market intervention.
Accordingly, the US Treasury Department added six economies to its Watch List, including: China, Germany, Malaysia, Singapore, Taiwan, and Vietnam. Of these, Vietnam exceeded two criteria: a bilateral trade surplus in goods and services with the United States (reaching $105 billion, exceeding the $15 billion threshold) and a current account surplus (reaching $19 billion, equivalent to 4.7% of GDP, exceeding the 3% GDP threshold).
The State Bank of Vietnam (SBV) stated that, in recent bilateral meetings with the US Treasury Department, the US Treasury Department highly appreciated Vietnam's management of monetary and exchange rate policies, noting Vietnam's seriousness in addressing US concerns and maintaining stability in the financial, monetary, and macroeconomic markets amidst numerous difficulties and challenges.
In the joint statement on upgrading Vietnam-US relations to a comprehensive strategic partnership, the US also highly appreciated Vietnam's continuous efforts in further modernizing and enhancing the transparency of its monetary and exchange rate policy framework, promoting macroeconomic stability, and ensuring the safety and soundness of the banking system.
"Based on the comprehensive strategic partnership between the two countries, the State Bank of Vietnam will continue to coordinate with ministries and agencies to maintain close cooperation and establish regular and effective exchange channels with the US Department of Treasury; thereby enhancing understanding, promoting cooperation, sharing information, and promptly resolving emerging issues of mutual concern," the State Bank of Vietnam stated.
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