31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam no longer labeled as currency manipulator: US Treasury
Ngoc Thuy 07:33, 2021/04/17
The US Treasury of Department would continue its enhanced engagement with Vietnam.

There is insufficient evidence to make a finding that Vietnam manipulates its exchange rate for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade.

 US Department of Treasury. Source: Svitlana Kravchenko/US Embassy in Ukraine

US Department of Treasury made the statement in its latest report on foreign exchange policies of major trading partners of the US, announcing a contradict view to its previous report released on December 16, 2020.

In addition to Vietnam, Switzerland and Taiwan (China) have also been dropped from the list of currency manipulators.

The US Treasury Department also noted that it has been working with the Vietnamese authorities since early 2021 to develop “a plan with specific actions to address the underlying causes of Vietnam’s currency undervaluation.”, saying enhanced engagement with Vietnam will continue in the coming time.

Promptly after Vietnam being labeled as currency manipulator last December, the State Bank of Vietnam (SBV), the country’s central bank, released a statement rejecting the claim, saying the country’s main objective of its foreign-exchange policy is to control inflation and stabilize the macro-economy.

The SBV stressed Vietnam continues to give priority to a stable and sustainable trade-economic relation with the US and will strive to ensure a harmonized and fair-trade relations with the US.

Under the Trade Facilitation and Trade Enforcement Act of 2015, the US uses three criteria to determine if a country is a currency manipulator, including (1) a significant bilateral trade surplus with the United States is one that is at least US$20 billion over a 12-month period; (2) a material current account surplus is one that is at least 2% of gross domestic product (GDP) over a 12-month period; and (3) persistent, one-sided intervention occurs when net purchases of foreign currency are conducted repeatedly, in at least six out of 12 months, and these net purchases total at least 2% of an economy’s GDP over a 12-month period.

While removing a number of countries from the manipulation list, the US announced a Monitoring List of major trading partners that merit close attention to their currency practices and macroeconomic policies, comprising China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico.

TAG: Vietnam currency manipulator US Treasury Department China Switzerland Taiwan
Other news
13:20, 2022/20/23
Vietnam c.bank raises policy rates first time in two years
A higher interest rate cap would have a direct impact on banks, businesses, and people.
15:06, 2022/06/19
Central bank rules out expanding credit growth target
The SBV set the credit growth target at 14% this year, higher than the 2020-21 period, which was 12.17% and 13.61%, respectively.
15:39, 2022/39/15
Vietnam's bond market expands to nearly $100 billion
The growth was driven by both the Government and corporate bond segments.
07:00, 2022/00/11
Authorities urged to address businesses' “inflating” capital
In a broader sense, such a practice would cause negative impacts on the stock market and the confidence of investors.
18:53, 2022/53/07
Central bank considers expanding credit quota for well-run banks
In the past months, the fact that many banks have seen their quota reaching the limits makes it hard for people and businesses to access loans.
16:07, 2022/07/07
Finance ministry offers redemption path for FLC-linked stocks
FLC Group and its affiliates have so far failed to meet the stock market’s regulations and face the threat of forced delisting.