Illustrative image (Photo: VNA)A statement by the USTR said that the move reflects theagreement reached earlier this week between the US Department of the Treasury andthe State Bank of Vietnam (SBV).
The determination finds that the agreement between the USDepartment of the Treasury and the State Bank of Vietnam provides a satisfactory resolution ofthe matter subject to investigation and accordingly that no trade action iswarranted at this time. The USTR, in coordination with the US Department of the Treasury, will monitorVietnam’s implementation going forward, it said.
US Trade Representative Katherine Tai commended Vietnam for itscommitment to addressing the US's concerns with its currency practices and setting animportant example for the Indo-Pacific region.
American workers and businesses are stronger when theirpartners value their currency fairly and compete on a level playing field, shesaid, adding that going forward, in coordination with the US Department of the Treasury, the US side willwork together with Vietnam to ensure implementation, and will continue toexamine the currency practices of other major trading partners.
Earlier this week, the US Department of the Treasury and the State Bank of Vietnam reached anagreement to address the US’s concerns about Vietnam’scurrency practices.
A joint statement by the US Department of the Treasury and the State Bank of Vietnam said that SBVGovernor Nguyen Thi Hong and US Secretary of the Treasury Janet L. Yellen had avirtual meeting.
The US Department of the Treasury and the State Bank of Vietnam have had constructivediscussions in recent months through the enhanced engagement process, andreached an agreement to address the US Department of the Treasury’s concerns about Vietnam’s currencypractices as described in the US Department of the Treasury’s Report to Congress on the Macroeconomicand Foreign Exchange Policies of Major Trading Partners of the United States.
Vietnam confirmed that it is bound under the Articles ofAgreement of the International Monetary Fund (IMF) to avoid manipulating its exchange rate in order toprevent effective balance of payments adjustment or to gain an unfaircompetitive advantage and will refrain from any competitive devaluation of theVietnamese dong.
The State Bank of Vietnam is also making ongoing efforts to further moderniseand make more transparent its monetary policy and exchange rate framework.
The State Bank of Vietnam will continue to provide necessary information forthe US Department of the Treasury to conduct thorough analysis and reporting on the State Bank of Vietnam’s activities inthe foreign exchange market in the US Department of the Treasury’s Semiannual Report to Congress on theMacroeconomic and Foreign Exchange Policies of Major Trading Partners of theUnited States./.
VNA
