Good News for Investors: US Treasury Continues to Omit Vietnam Currency Off Currency Manipulator's List.
How did the VND get on the Currency Manipulator's List in the first place? It means Vietnam may have suppressed the value of its currency in the past, thereby shorting investors on potential profits.
State Bank of Vietnam (SBV) said on November 8 that the US Department of Treasury did not list Vietnam as a currency manipulator in its latest semi-annual report on major trading partners.
To determine assessments, the report used three criteria: the trade surplus with the US, the current account surplus, and persistent and one-sided foreign exchange intervention.
Vietnam Dong Was Not the Only Currency on the List
China, Germany, Malaysia, Singapore, Taiwan (China), and Vietnam were included in the US Treasury's monitoring list of major trading partners.
Vietnam met two of the three criteria, namely the bilateral surplus of goods and services with the US (105 billion USD over the four quarters through June 2023, exceeding the threshold of 15 billion USD), as well as the current account surplus (at 19 billion USD, equivalent to 4.7% of GDP over the four quarters through June 2023, exceeding the threshold of 3% of GDP). As a result, it was included in the monitoring list.
The US Treasury has continued not to list Vietnam as a currency manipulator.
Vietnam's monetary policy and foreign exchange rates have been highly valued by the US Treasury.
At recent meetings with the central bank, the US Treasury expressed high appreciation for Vietnamese monetary policy and foreign exchange rate governance, according to the SBV. Despite numerous difficulties and challenges, Southeast Asian countries are serious about addressing the US's concerns and ensuring that the financial and monetary markets and macroeconomy remain stable.
In the joint statement on the elevation of bilateral relations to the comprehensive strategic partnership, the US appreciated Vietnam's ongoing efforts to further modernize and enhance the transparency of its monetary policy and exchange rate management framework, promote macro-economic stability, and ensure the safety and soundness of the banking system.
Based on the comprehensive strategic partnership between the two countries, the SBV will continue to coordinate with ministries and sectors to maintain close cooperation and establish channels for frequent and effective communication with the US Treasury. In this way, mutual understanding, cooperation, information sharing, and timely resolution of common concerns will be fostered, according to the central bank.
As of November 9th, 2023, VND 24,340 equals USD 1.00.
