US Treasury Department recognises Việt Nam’s progress in addressing currency-related concerns

A bank teller counts US dollars at a transaction office in Hà Nội. The State Bank of Việt Nam will keep flexible exchange rates appropriate to macro-economic balances, market developments, and the monetary policy’s targets. VNA/VNS Photo

HÀ NỘI — The US Department of the Treasury has recognised the progress made by Việt Nam in its recently released report on macro-economic and foreign exchange policies of major trading partners of the US, the State Bank of Việt Nam (SBV) said on Monday.

The SBV said it would continue working closely with relevant ministries and sectors to discuss the issues of the US side’s concern in a cooperative and win-win spirit so as to develop harmonious and sustainable trade relations.

The central bank of Việt Nam would continue a monetary policy that aims to control inflation, stabilise the macro-economy, and aid economic recovery and development. It would also keep flexible exchange rates appropriate to macro-economic balances, market developments, and the monetary policy’s targets, it added.

In the report unveiled on June 10, the US Department of the Treasury continued reviewing the large trading partners in terms of three criteria: bilateral trade surplus with the US, material current account surplus, and persistent, one-sided intervention in the foreign exchange market.

It placed 12 economies on its “Monitoring List” of major trading partners that merit close attention to their currency practices and macro-economic policies, namely China, Japan, the Republic of Korea, Germany, Italy, India, Malaysia, Singapore, Thailand, Taiwan (China), Việt Nam, and Mexico.

All except Taiwan and Việt Nam (which were subject to enhanced engagement) were on the Monitoring List in the December 2021 Report. As both Việt Nam and Taiwan exceeded the thresholds of fewer than three criteria under the Trade Facilitation and Trade Enforcement Act of 2015 (2015 Act) over the four quarters through December 2021, the Treasury Department put the two economies on the list again.

In the report, it also concluded that no major trading partners manipulated their exchange rates in 2021.

In early 2021, the department commenced enhanced bilateral engagement with Việt Nam in accordance with the 2015 Act. They reached agreement in July 2021 to address the department’s concerns about Việt Nam’s currency practices.

The Treasury Department said in the report that it continued to engage closely with the SBV to monitor Việt Nam’s progress in addressing Treasury’s concerns and is thus far satisfied with progress made by Việt Nam. — VNS