Vietnamplus

Vietnam continues to meet the US Treasury criteria for not being labeled as a currency manipulator, according to the US Treasury.

Vietnam continues to meet the US Treasury criteria for not being labeled as a currency manipulator, according to the US Treasury.

The State Bank of Vietnam (SBV) pledges to continue fostering exchange rate flexibility while maintaining macroeconomic and financial market stability, so as to ease concerns from the US Department of Treasury about the country’s currency practices.

The US Treasury Department’s labelling of Vietnam as a currency manipulator is groundless and certainly significantly affects the psychology of the Vietnamese business community, especially those operating in the import and export field, according to Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI).

Vietnam is working hard to build a stable and transparent investment and business environment, thus becoming a destination for international human and capital resources, so it would be unreasonable for the country to devaluate its currency, experts have said.

The State Bank of Vietnam (SBV) said on December 17 that its management of exchange rate in recent years, within the general framework of monetary policy, aims to achieve the consistent goal of controlling inflation and stabilising the macro-economy, not to create unfair competitive advantages in international trade.

With ultra-loose monetary policy worldwide, nominal interest rates of 95 central banks have been cut 38 percentage points from the outset of the year, and gold has become the most profitable channel.

Domestic production has faced strong competition as the US and China are increasing exports to Vietnam on the back of their escalating trade war, head of the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam Le Trieu Dung said on August 9.