Vietnam not listed as currency manipulator in US Treasury’s latest report
VOV.VN - The US Department of the Treasury has continued not to name Vietnam as a currency manipulator in its latest semi-annual report on the macro-economic and foreign exchange policies of major trading partners of the US, the State Bank of Vietnam (SBV) reported on November 8.
The report continued to define three criteria in making these assessments, namely trade surplus with the US, current account surplus, and persistent and one-sided intervention within the foreign currency market.
The US Treasury included six economies in the monitoring list of major trading partners, namely China, Germany, Malaysia, Singapore, Taiwan (China), and Vietnam.
Vietnam was able to meet two of the three criteria which are the bilateral goods and services surplus with the US, US$105 billion over the four quarters through to June, thereby surpassing the threshold of US$15 billion, as well as the current account surplus at US$19 billion, equivalent to 4.7% of GDP over the four quarters through to June and exceeding the threshold of 3% of GDP. Therefore, it was named in the monitoring list.
According to the SBV at its recent meetings held with the central bank, the US Treasury greatly valued Vietnamese governance of the monetary policy and foreign exchange rates, a move which shows the Southeast Asian country’s seriousness in dealing with the US side’s concerns and maintenance of the stability of the financial and monetary markets, as well as the macro-economy amid numerous difficulties and challenges.
In the joint statement on the elevation of bilateral ties to the comprehensive strategic partnership, the US appreciated ongoing Vietnamese efforts to further modernise and enhance the transparency of its monetary policy and exchange rate management framework in a bid to enhance macro-economic stability and to ensure the overall safety and soundness of the banking system.
On the basis of the two countries’ comprehensive strategic partnership, the SBV will continue co-ordinating efforts with ministries and sectors to keep close ties and establish channels for frequent and effective communications with the US Treasury, thereby helping to strengthen mutual understanding, linkages, information sharing, and the timely settlement of issues of shared concern, the central bank said.
