SBV responds to US’s latest forex exchange report
Foreign currency exchange at the Ho Chi Minh City Development Bank. (Photo: VNA)
The report placed Vietnam on the monitoring list on currency practice along with China, Japan, the Republic of Korea, Germany, Italy, Ireland, Singapore, Malaysia and Switzerland.
The SBV noted it will also continue implementing monetary policies to control inflation, maintain a stable macro-economy, support economic growth and flexibly manage the forex rates in line with market developments and the monetary policies’ objectives, so as to not create unfair competition in foreign trade.
According to the SBV, the US Department of Treasury on January 14 issued a Semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US which establishes a Monitoring List of countries that merit close attention to their currency practices and macroeconomic policies.
In the report, the department reviewed 20 major US trading partners with bilateral goods trade with the US of at least 40 billion USD annually against the thresholds it has established for the three criteria – a significant bilateral trade surplus with the US at at least 20 billion USD, a material current account surplus at at least 2 percent of GDP, and persistent, one-sided intervention occurs when net purchases of foreign currency are conducted repeatedly, in at least 6 out of 12 months, and these net purchases total at least 2 percent of an economy’s GDP over a 12-month period.
This is the second time Vietnam has been named in the report. The country was first mentioned in the May 2019 report as it met two criteria on bilateral goods trade with the US and a material current account surplus.
The January 2020 report keeps Vietnam on the list even though it only met one criterion on goods trade surplus with the US, which continues to rise significantly to reach 47 billion USD over the four quarters through June 2019. Over this same period, Vietnam’s current account balance steadily narrowed, to 1.7 percent of GDP while net purchases of foreign exchange were 0.8 percent of GDP, it adds.
The report also concludes that during the period, no major trading partner met all three criteria to be labelled a currency manipulator.
Related News
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
Ambitious profit goals of banks
10:32 | 13/04/2024 Finance
Banks seek to attract foreign capital
10:50 | 09/04/2024 Finance
Top 50 US businesses arrive in Vietnam for the country’s attractive investment environment
09:56 | 01/04/2024 Import-Export
Latest News
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
More News
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Central bank plans to auction gold bars on April 22
18:00 | 21/04/2024 Finance
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Forum discusses support for women-owned firms to join supply chains
17:41 | 18/04/2024 Finance
Your care
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance