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US Treasury Department Recognizes Vietnam’s Progress in Resolving Currency Issues | Company

Illustrative image (Photo: VNA)

Hanoi (VNA) – The U.S. Department of the Treasury recognized Vietnam’s progress in its recently released report on foreign exchange and macroeconomic policies.
major trading partners of the United Statesthe State Bank of Vietnam (SBV) said on June 13.

The SBV said that in the future, 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 so as to develop smooth and lasting business relations.

The Central Bank of Vietnam will pursue a Monetary Policy which aims to control inflation, stabilize the macro-economy and promote economic recovery and development. It will also maintain flexible exchange rates adapted to macroeconomic balances, market developments and monetary policy objectives, he added.

In the report released on June 10, the US Department of Treasury continued to examine major trading partners against three criteria: bilateral trade surplus with the United States, substantial current account surplus, and persistent and unilateral intervention in the foreign exchange market.

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), Vietnam and Mexico.

All but Taiwan and Vietnam (which have been subject to enhanced engagement) were on the watch list in the December 2021 report. As Vietnam and Taiwan both exceeded the thresholds by less than three criteria under of 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 enhanced bilateral engagement with Vietnam in accordance with the 2015 law. They reached an agreement in July 2021 to address the department’s concerns about Vietnam’s monetary practices.

The Treasury Department said in the report that it continues to work closely with the SBV to monitor Vietnam’s progress in addressing Treasury’s concerns and that it is satisfied with Vietnam’s progress so far. .