Vietnam is no longer subject to advanced analysis of currency manipulation, according to the latest US Treasury report.
On June 10, the US Department of Treasury issued a Report on “Macro-economic and foreign exchange policies of major US trading partners”, which continued to consider the main trading partners on three criteria. Act 2015: bilateral trade surplus with the United States, current account surplus and prolonged, one-way foreign exchange market intervention.
At this reporting period, Vietnam no longer meets all 3 criteria, so the US Department of Finance removed Vietnam (along with Taiwan) from the list of “subjects to advanced analysis” and back to the “list of supervisors”. close”. The remaining 10 countries on this monitoring list include China, Japan, South Korea, Germany, Italy, India, Singapore, Malaysia, Thailand, Mexico, Vietnam and Taiwan.
An economy that meets two of the three criteria under the 2015 Act will be placed on a “monitoring list” by the US. Once on this list, the country will also stay on the list for at least two consecutive reporting periods – to determine lasting improvement. In addition, the U.S. Treasury Department will add and withhold any trading partners that have a large and disproportionate share of the overall U.S. trade deficit — even if that country does not meet two of the three criteria of the U.S. Treasury Department. Act 2015.
In this report, Switzerland is the only economy that meets all three criteria, and the US Treasury continues to have enhanced exposure to the country’s central bank. In addition, the US Treasury Department also concluded that no major US partners will manipulate currencies in 2021.
According to the State Bank of Vietnam, for the whole year of 2021, Vietnam will meet the criteria set by the US Department of Finance, which is a trade surplus in goods and services with the US of 90 billion USD (the threshold of 15 billion USD).
From the beginning of 2021, the US Department of Finance has enhanced bilateral contact with Vietnam and reached a general agreement in July 2021 to resolve US concerns about currency and exchange rate issues.
In this report, the US Department of Finance continues to recognize Vietnam’s progress. At the same time, at the US Treasury Department’s working visit to Vietnam on April 5, the US Department of Finance highly appreciated the management of monetary and exchange rate policies of the State Bank over the past time. This operator has shown seriousness in addressing concerns of the US side and maintaining stability in the financial, monetary and macroeconomic markets in the context of many difficulties and challenges.
In the coming time, the State Bank of Vietnam said that it will continue to actively coordinate with ministries and sectors to work on issues of interest to the US side in the spirit of cooperation, mutual benefit, and building relations. harmonious and sustainable trade.
At the same time, the State Bank continues to administer monetary policy in order to control inflation, stabilize the macro-economy, and support the process of economic recovery and development; flexible exchange rate management, in line with macro balances, market movements and monetary policy objectives.