US continues to determine that Vietnam is not manipulating currency

The US Treasury Department said China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland and Switzerland are on a list of nine countries and territories that need to be monitored for foreign exchange monitoring.

Illustrative photo. (Source: VNA)

The US Treasury Department on June 5 released its first semi-annual currency report under the new administration of President Donald Trump, confirming that no major trading partners of the world's largest economy will manipulate their currencies in 2024.

However, the “watch list” of countries and territories requiring special attention has grown to nine, after adding Ireland and Switzerland, and issuing a stern warning to China.

Although it did not label China a currency manipulator amid “devaluation pressures” on its currency, the US Treasury Department concluded that the world’s second-largest economy “lacks transparency around its exchange rate policies and practices.”

The US Treasury Department said China, Japan, South Korea, Taiwan (China), Singapore, Vietnam, Germany, Ireland and Switzerland are on a list of nine countries and territories that need closer monitoring of foreign exchange policies.

Countries that meet two criteria - a trade surplus with the US of at least $15 billion, a global account surplus of more than 3% of gross domestic product (GDP) and persistent one-way net foreign exchange purchases - are automatically included in the list. Ireland and Switzerland were added to the list due to their large trade and current account surpluses with the world's largest economy.

The report — which covers the final year of President Joe Biden’s administration — was released hours after Trump held his first phone call with Chinese President Xi Jinping since returning to the White House, amid rising trade tensions between the world’s two largest economies and, more recently, a battle over critical minerals.

During his first term, Mr. Trump labeled China a currency manipulator. However, in January 2020, the US Treasury Department removed the world’s second largest economy from this list, when a Chinese delegation came to Washington to sign a trade agreement with the US./.

(Vietnam+)

Source: https://www.vietnamplus.vn/my-tiep-tuc-xac-dinh-viet-nam-khong-thao-tung-tien-te-post1042694.vnp