The State Bank of Vietnam voiced the determination of the 'Vietnam by the money manipulation'

The State Bank affirmed that the exchange rate management in recent years was only to control inflation and stabilize the macro-economy, not to create a competitive advantage.

On December 16, the US Department of Finance issued a report "Macroeconomic policies and foreign exchange of major US trading partners", which determined Vietnam and Switzerland to manipulate their currencies.

This report is published twice a year. According to the US Trade Promotion and Enhancement Act 2015, the Ministry of Finance of this country needs advanced analysis on exchange rate policies and the foreign economy of major trading partners. "Currency manipulation" is determined to satisfy 3 criteria of bilateral trade surplus with the US, current balance surplus and foreign currency intervention.

These criteria include the bilateral merchandise trade surplus with the US at least 20 billion USD; Current account surplus is equivalent to at least 2% of GDP; One-way and prolonged intervention in the foreign currency market, represented by net buying of foreign currency for at least 6 months over a 12-month period with total net buying of foreign currency equivalent to at least 2% of GDP in a 12-month period .

According to the US report, Vietnam and Switzerland meet the above 3 criteria, so they are labeled "currency manipulation".

In a statement released on the morning of December 17, the State Bank of Vietnam affirmed that the exchange rate control over the past years is only aimed at achieving the goal of controlling inflation, stabilizing the macro-economy, not to create advantages. unfair international trade competition. In addition, this policy will also continue to be maintained by Vietnam in the coming time.

In addition, according to the operator, the bilateral trade surplus with the US and the current account surplus are the result of a series of factors related to the specificities of the Vietnamese economy. The State Bank's recent intervention of buying foreign currencies is to ensure the smooth operation of the foreign currency market, in the context of the abundant supply of foreign currencies. This move has contributed to stabilizing the macroeconomy, and at the same time strengthening the State foreign exchange reserve, which is low compared to other countries in the region, in order to enhance the national financial and monetary security.

The State Bank affirmed that Vietnam attaches great importance to a stable economic - trade relationship with the US and will coordinate with the parties to discuss and work on matters that Washington is interested in, and to advance to commercial relations. harmony and fairness according to the Action Plan of cooperation between the two countries.

Also in the report on December 16, the US Treasury Department put India, Taiwan and Thailand on the official watch list. The other five economies - China, Japan, South Korea, Germany, Italy, Singapore and Malaysia - are still on the watch list from earlier.

Before that, the US labeled currency manipulation with 3 economies. Last year it was with China, but it was removed in January this year. Before that, China was also considered as currency manipulation period 1992 - 1994. In the late 1980s, the two economies were called Japan and Taiwan.

However, the move of the US Treasury Department was assessed by WSJ to be primarily symbolic, so that the government must consult with the International Monetary Fund (IMF) to eliminate the unfair advantage that money gives a nation. By law, the currency manipulation labeling will entail negotiations, which may end up imposing import duties. However, no automatic punishment will be applied.

Ha Thu - VNEXPRESS