Vietnam remains out of currency manipulation watch list of US

The headquarters of the State Bank of Vietnam in Hanoi (Photo: congthuong.vn)

Hanoi (VNA) – Vietnam has continued to be excluded from the US Department of the Treasury’s monitoring list of currencymanipulators in its latest report on macro-economic and foreignexchange policies of major trading partners of the US.

The State Bank of Vietnam (SBV) saidthat the report, released on June 17, continued to base on three criteria to makeassessments, namely trade surplus with the US, current account surplus,and persistent and one-sided intervention in the foreign currency market.

In the report, the US Department of the Treasury placed seven economies on the monitoring list of major tradingpartners that merit close attention to their currency practices and macro-economicpolicies, comprising China, the Republic of Korea, Germany, Malaysia,Singapore, Switzerland, and Taiwan (China).

It also found that no major tradingpartner manipulated currency during the period from January to December 2022. Duringthe period, Vietnam exceeded only one of the three criteria, on trade surplus, so itwas excluded from the monitoring list.

The SBV said that at bilateralmeetings with the central bank of Vietnam, the US Department of the Treasury continuedhighly valuing the SBV’s governance of the monetary and foreign exchange policies,which have managed to sustain stability of the financial market, the monetarymarket, and the macro-economy amid numerous difficulties and challenges.

The SBV has repeatedly affirmed theconsistent target of Vietnam’s monetary and foreign exchange policies is tohelp control inflation, stabilise the macro-economy, and ensure safety forcredit institutions. It has been making efforts to gradually modernise andpromote the transparency of the monetary and foreign exchange policy frameworks.

The bank has governed foreign exchangerates in a proactive and flexible manner that matches the development level ofits foreign exchange market and economic factors. It has not used the foreignexchange policy to create an unfair competitive edge while ensuring the foreignexchange market’s stable and smooth operations to help with macro-economicstability.

It added that it will continuegoverning the monetary and foreign exchange policies in the abovementionedmanner and actively coordinating with ministries and sectors to work on theissues of the US side’s concern in the cooperative and goodwill spirit./.

VNA