Vietnam does not manipulate currency and the response of the State Bank

At the regular press conference for the second quarter on June 21, Deputy Governor Dao Minh Tu said that the exchange rate policy is still being managed stably by the State Bank of Vietnam (SBV), creating confidence for import-export enterprises and foreign investors, ensuring national interests.

The reason the US Treasury Department continues to affirm that Vietnam is not on the currency manipulation monitoring list is because we conduct policies for the purpose of stabilizing inflation control, stabilizing the value of the currency, and stabilizing the macro economy. Not because we finance exports to ensure benefits for Vietnam but not for our partners.

“This once again affirms that the State Bank of Vietnam manages exchange rates clearly and transparently, aiming for equality in trade relations with other countries, even with large countries like the US, thereby creating confidence for foreign investors,” said Deputy Governor Dao Minh Tu.

At bilateral meetings with the State Bank of Vietnam, the US Treasury Department continued to appreciate the management of monetary and exchange rate policies in recent times, which have maintained stability in the financial, monetary and macroeconomic markets in the context of many difficulties and challenges.

In the latest announcement on this occasion, the State Bank affirmed that it always manages Vietnam's monetary and exchange rate policies towards the consistent goal of contributing to controlling inflation, stabilizing the macro-economy, and ensuring the safety of the credit institution system.

Over the past time, the State Bank has been making efforts to gradually modernize and make transparent the monetary policy framework and exchange rate management. At the same time, the State Bank actively and flexibly manages exchange rates, in accordance with the development level of the foreign exchange market and economic factors; does not use exchange rate policies to create unfair trade competitive advantages; ensures stable and smooth operation of the foreign exchange market, contributing to macroeconomic stability.

In the coming time, the State Bank will continue to operate monetary and exchange rate policies in accordance with the above orientation to contribute to controlling inflation, stabilizing the macro-economy, ensuring the safety of the system of credit institutions; at the same time, it will continue to actively coordinate with ministries and branches to discuss and work on issues of interest to the US side in a spirit of cooperation and goodwill.

Previously, on June 17, the US Treasury Department issued a report on “Macroeconomic and foreign exchange policies of major trading partners of the United States”, continuing to rely on three criteria to consider the possibility of currency manipulation of major trading partners.

These three criteria include: bilateral trade surplus with the United States; current account surplus; and one-sided, persistent intervention in the foreign exchange market.

The US Treasury Department concluded that no major US trading partner manipulated its currency during the period from January to December 2022.

During the above period, Vietnam exceeded the threshold of criterion 1 on trade surplus of goods and services with the United States, therefore the US Treasury Department continued not to put Vietnam on the Monitoring List.

Vietnam is not on the US currency manipulation watchlist. China, South Korea, Germany, Malaysia, Singapore, Switzerland and Taiwan are the economies on Washington's watchlist.

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