Vietnam no longer labeled as currency manipulator: US Treasury
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.
Other News
- PM urges Central bank to ensure positive growth in 2024
- Vietnamese Gov't to continue VAT cut for second half of 2024
- 3,400 taels of gold purchased at the first-in-11-year auction
- HoSE to launch KRX-developed transaction system in early May
- Central bank moves gold auction to tomorrow
- Vietnam’s c.bank sells USD to stabilize exchange rate
- Central bank to auction gold to calm domestic market
- Vietnam's Central Bank ready to steady foreign exchange market
- Finance ministry clears bottlenecks to pave way for stock market upgrade
- Over 60% of Vietnamese use QR codes to pay
Trending
-
Upcoming Law on industrial park – Vietnam’s passage to attract new foreign investment wave
-
Vietnam news in brief - May 5
-
Vietnamese Government steps up efforts to develop market for carbon credits
-
Hanoi: The 'epic victory' of Dien Bien Phu as seen in photos
-
Vietnam seeks more information on Cambodia’s Funan Techo canal project
-
Hanoi strives to ensure smooth high school exams
-
Carnaval Ha Long 2024 woos tourists with fireworks and drone light shows
-
Trivial jobs: Hanoians strive to keep their old trades alive
-
Affordable, quality tours offered at Hanoi Tourism Festival 2024