US affirms Vietnam does not manipulate currency

DNVN - The US Treasury Department has just made a positive assessment of Vietnam's monetary policy and continues to determine that Vietnam does not "manipulate currency". The US side emphasized that Vietnam operates monetary policy for the goal of stabilizing inflation control, stabilizing the value of the currency and stabilizing the macro economy.

This announcement was mentioned by the US Treasury in the report "Macroeconomic and foreign exchange policies of major US trading partners". In the report, the US Treasury made positive comments on the results of Vietnam's monetary and exchange rate policy management.

Accordingly, the report continues to examine the possibility of currency manipulation by major trading partners based on three criteria: bilateral trade surplus with the US, current account surplus, and one-sided, persistent intervention in the foreign exchange market.

The first two criteria include a bilateral trade surplus with the US of no more than $15 billion, and a current account surplus equivalent to no more than 3% of GDP. The third criterion is based on the total net foreign exchange purchases by the central bank over 12 months.

Vietnam is currently on the US Treasury Department's "monitoring list", along with six other countries and territories.

Vietnam is currently on the "monitoring list" of the US Treasury Department, along with 6 other countries and territories including China, Japan, Germany, Malaysia, Singapore and Taiwan (China) due to having two criteria exceeding the threshold: bilateral goods surplus and current account surplus.

Vietnam's bilateral trade surplus with the US will reach US$103 billion by the end of 2023. Vietnam is the country with the third largest goods surplus with the US. In addition, Vietnam's foreign exchange reserves by the end of 2023 will be US$88.1 billion, accounting for 21% of GDP.

The US Treasury Department's report said that the State Bank of Vietnam (SBV) net bought foreign exchange in the 4 quarters (up to December 2023) of about 7 billion USD, or 1.5% of GDP. Twice a year, the US Treasury Department will publish the report "Macroeconomic and foreign exchange policies of major US trading partners".

The reason the US Treasury Department continues to affirm that Vietnam is not on the watch list for “currency manipulation” is because Vietnam conducts its policies with the goal of stabilizing inflation control, stabilizing the value of the currency and stabilizing the macro economy. Vietnam does not finance exports to ensure benefits for Vietnam but not for its partners.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/my-khang-dinh-viet-nam-khong-thao-tung-tien-te/20240622025320916