The US withdrew Vietnam from the list of currency manipulation countries

Thứ Bảy, 17/4/2021| 14:56

The US Treasury Department has just removed the names of Vietnam and Switzerland from the list of countries considered by Washington to be currency manipulators, reversing the decision of former President Donald Trump's administration last year.

In the first 6-month report before the Congress on currency manipulation, the US Treasury Department under the new President Joe Biden on April 16 said that there are currently no countries that within the US classification standards of currency manipulation country.

The US withdrew Vietnam from the list of currency manipulation countries

The US Treasury Department does not classify China as a currency manipulator, something the Trump administration did in 2019 amid trade tensions between the world's two largest economies. China is on the list of 11 countries under Washington's lower level of scrutiny, including Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand and Mexico. Of which, only Ireland and Mexico were added to the list on April 16.

According to the AP, there are no countries that are currently subject to economic sanctions by the US for allegations of currency manipulation.
According to US regulations, countries are put on the list of currency manipulation when they have bilateral trade surpluses with the US of more than 20 billion USD, foreign currency intervention exceeds 2% of gross domestic product (GDP) and the global current account surplus exceeds 2% of GDP.
Meanwhile, in the first 10 months of 2020, Vietnam's trade surplus with the US reached a record 50.7 billion USD, exceeding the surplus of 47 billion USD of the whole year 2019. In December 2020, the Ministry of Finance of the US has made Vietnam together with Switzerland on the list of currency manipulation countries.
Responding to the accusations of the US Department of Finance at that time, the State Bank of Vietnam (SBV) affirmed that the exchange rate management in recent years was within the framework of the general monetary policy, to achieve the consistent goal of checking control inflation, stabilize the macro-economy, not to create an unfair competitive advantage in international trade.
"The bilateral trade surplus with the US and the current account surplus is the result of a series of factors related to the peculiarities of the Vietnamese economy", the SBV emphasized.
According to the State Bank, Vietnam attaches great importance to the stable and sustainable economic - trade relationship with the US. Hence, Vietnam will coordinate with concerned ministries and branches to exchange and work on issues that the US is interested in in the spirit of cooperation, mutual benefit, towards a harmonious trade relationship fairness under the Action Plan of Cooperation between the two countries.
At the same time, the State Bank of Vietnam continues to administer monetary policy to control inflation, stabilize the macro-economy, reasonably support economic growth, manage exchange rates flexibly, in line with macro balances, market developments and monetary policy targets which are not aimed at creating unfair international trade competitive advantage.

 

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