U.S. resolves currency dispute with Vietnam
The United States has reached an agreement with Vietnam to resolve the currency dispute of Southeast Asian countries that harmed the economic relations between the two countries during Donald Trump’s presidency.
US Treasury Secretary Janet Yellen announced the agreement at the end of a meeting with the Governor of the National Bank of Vietnam Nguyen Thi Hung on Monday, a move that may avoid the threat of punitive tariffs on Asian countries. Its currency convention.
“I believe that over time, the State Bank of Vietnam’s attention to these issues will not only address the concerns of the Ministry of Finance, but will also support the further development of Vietnam’s financial market and enhance its macroeconomic and financial resilience,” Yellen said in a statement Said in.
The Biden administration had Has been withdrawn Trump imposed the currency manipulator name on Vietnam last December, but the agreement reached on Monday will codify and ease.
According to the agreement, the Central Bank of Vietnam will emphasize that its monetary policy is aimed at “promoting macroeconomic stability and controlling inflation.”
Vietnam also stated that it will abide by the rules of the International Monetary Fund, “avoid manipulating exchange rates to prevent effective balance of payments adjustment or gain unfair competitive advantage, and will avoid any competitive devaluation of the Vietnamese dong”. It also promised to be more transparent and flexible in managing its currency.
“The State Bank of Vietnam will continue to manage exchange rate policies within the framework of its overall monetary policy to ensure the normal operation of the currency and foreign exchange markets, promote macroeconomic stability and control inflation, rather than create unfair competitive advantages internationally. Trade, “Hong said.
This U.S. Currency Survey In recent years, due to the mutual distrust of China, the relationship between the two countries on geopolitical issues has become closer.
So far this year, the US’s merchandise trade deficit with Vietnam ranks third among all countries, second only to China and Mexico.
Vietnamese government Promise to buy As trade tensions with Washington intensified in 2019, more natural gas, coal, food and other items from the United States.
This situation peaked in the second half of the Trump administration, when some US officials believed that Vietnamese exporters had unfairly profited from the trade war with Beijing, including relabeling Chinese goods as “Made in Vietnam.”
In 2019, Trump said in his trade remarks that Vietnam was “almost the worst abuser of all,” which disturbed officials in Hanoi.
Vietnam has repeatedly denied manipulating its currency.