US Treasury Department Recognizes Việt Nam’s Progress in Addressing Currency Issues
VIETNAM, June 14 –
A bank teller counts US dollars at a transaction desk in Hà Nội. The State Bank of Việt Nam will maintain flexible exchange rates adapted to macroeconomic balances, market developments and monetary policy objectives. Photo VNA/VNS
HÀ NỘI — The U.S. Treasury Department has recognized Việt Nam’s progress in its recently released report on the macroeconomic and foreign exchange policies of major U.S. trading partners, the State Bank of Việt said on Monday. Nam (SBV). .
The SBV said it will continue to work closely with relevant ministries and sectors to discuss issues of concern to the US side in a spirit of cooperation and win-win to develop smooth and lasting business relations.
The central bank of Việt Nam would pursue a monetary policy aimed at controlling inflation, stabilizing the macroeconomy, and fostering economic recovery and development. It would also maintain flexible exchange rates suited to macroeconomic balances, market developments and monetary policy objectives, he added.
In the report released on June 10, the US Treasury Department continued to screen major trading partners against three criteria: bilateral trade surplus with the United States, large current account surplus, and persistent and unilateral market intervention. changes. .
It has placed 12 economies on its “watch list” of major trading partners that deserve special attention with regard to their monetary practices and macroeconomic 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 watch list in the December 2021 report. Given that Việt Nam and Taiwan exceeded the thresholds by less than three criteria under the Trade Facilitation and Enforcement Act of 2015 (2015 Act) in the four quarters to December 2021, the Treasury Department re-listed the two economies.
In the report, it also concluded that no major trading partners manipulated their exchange rates in 2021.
In early 2021, the department began an enhanced bilateral engagement with Việt Nam in accordance with the 2015 law. They reached an agreement in July 2021 to address the department’s concerns regarding Việt Nam’s monetary practices.
The Treasury Department said in the report that it continues to work closely with the SBV to monitor Việt Nam’s progress in resolving Treasury’s concerns and that it is satisfied with Việt Nam’s progress so far. . —VNS