Viet Nam excluded in U.S. currency manipulation watch list

The report released on June 17 said that no major trading partner manipulated currency during the period from January to December 2022.

During the reviewed period, Viet Nam exceeded only one of the three criteria, on trade surplus, so it was excluded from the monitoring list.

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

The State Bank of Viet Nam (SBV) said that at bilateral meetings with the central bank of Viet Nam, the U.S. Department of the Treasury continued highly valuing the SBV’s governance of the monetary and foreign exchange policies, which have managed to sustain stability of the financial market, the monetary market, and the macro-economy amid numerous difficulties and challenges.

The SBV confirmed the consistent target of Viet Nam’s monetary and foreign exchange policies is to help control inflation, stabilize the macro-economy, and ensure safety for credit institutions. It has been making efforts to gradually modernize and promote the transparency of the monetary and foreign exchange policy frameworks.

The Vietnamese central bank has governed foreign exchange rates in a proactive and flexible manner that matches the development level of its foreign exchange market and economic factors.

It has not used the foreign exchange policy to create an unfair competitive edge while ensuring the foreign exchange market’s stable and smooth operations to help with macro-economic stability.

The U.S. Treasury Department removed Viet Nam from the monitoring list for currency manipulation in its semiannual report on November 12, 2022.

Earlier, the Treasury placed 12 economies including Viet Nam on its "Monitoring List" of major trading partners in the December 2021 Report as the Southeast Asian nation failed to meet fewer than three criteria under the Trade Facilitation and Trade Enforcement Act of 2015 (2015 Act) over the four quarters through December 2021./.