13.11.2022, 20:46

Vietnam no longer on currency manipulation monitoring list

Vietnam no longer on currency manipulation monitoring list

The State Bank of Vietnam (SBV) has just released a statement saying that Vietnam is no longer on the US currency manipulation monitoring list.

On November 10, 2022, the US Department of Treasury issued a Report on “Macroeconomic and foreign exchange policies of major US trading partners”. Accordingly, the US has removed Vietnam from the monitoring list for currency manipulation.

The US Treasury Department’s report in November continued to examine the currency manipulation capabilities of the main trading partners on the basis of three criteria: (i) bilateral trade surplus with the US; (ii) current account surplus and (iii) prolonged, one-way foreign exchange market intervention.

In this report, the US has put 7 economies on the monitoring list including China, Japan, South Korea, Germany, Singapore, Malaysia and Taiwan (China).

Switzerland still exceeds the threshold for all three criteria mentioned above and the US continues to perform advanced exposure and analysis. At the same time, the US Treasury Department concluded that no major trading partners manipulated currencies between July 2021 and June 2022.

In two consecutive reporting periods, Vietnam only exceeded the threshold of one criterion of trade surplus in goods and services with the US, so it was removed from the monitoring list by this agency.

Since the beginning of 2021, the US Department of Finance has conducted enhanced bilateral contact with Vietnam and reached a general agreement in July 2021 to resolve concerns of the US side on currency and exchange rate issues.

The US Department of Finance continues to recognize Vietnam’s progress in this report. At the same time, during the working visit to Vietnam on October 3, the US side highly appreciated the management of monetary and exchange rate policies of the State Bank of Vietnam in the context that the global economy is still facing many difficulties and challenges.

@ Zing News