The Ministry of Finance will continue to strengthen its commitments with Vietnam and Switzerland, and initiate increased oversight with Taiwan. This oversight includes prompting the development of a plan with concrete actions to address the underlying causes of low currency valuations and external imbalances.
Under the Omnibus Competition and Commerce Act of 1988 (Act 1988), the Ministry of Finance determined that there was insufficient evidence to conclude that Vietnam, Switzerland or Taiwan manipulated its exchange rates for either of the two purposes outlined in the 1988 Act.
However, consistent with the 1988 Act, the Ministry of Finance argued that continued increased oversight with Switzerland and Vietnam, as well as a more thorough assessment of developments in the global economy as a result of the COVID-19 pandemic, would allow the Ministry of Finance to better determine whether either of these economies has intervened in the currency market in 2020. to prevent the adjustment of the balance of payments effectively or gain an unfair competitive advantage in trade.
As for Taiwan, the Ministry of Finance will initiate intensive oversight under the 2015 Act and hope that such oversight will help the Department make the decisions required by the 1988 Act during the review period.
No other major US trading partner met the relevant 1988 or 2015 legislative criteria for currency manipulation or advanced analysis during the review period.The State Bank affirmed that the exchange rate control in recent years is not aimed at creating a competitive advantage.
On the Vietnamese side, at the end of 2020, when the former President Trump administration was included in the list of currency manipulation countries, the SBV affirmed that the exchange rate management over the years is within the framework of the general monetary policy, in order to Currently, the consistent target is to 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 are the result of a series of factors related to the peculiarities of the Vietnamese economy”, the SBV emphasized.
According to the State Bank, the purchase of foreign currency intervened recently to ensure the smooth operation of the foreign currency market in the context of the abundant supply of foreign currencies, contributing to macroeconomic stability, and at the same time strengthening foreign reserves. State exchange capital is at a low level compared to other countries in the region to enhance national financial and monetary security.
The SBV emphasized that Vietnam attaches great importance to a stable and sustainable economic-trade relationship with the US. Accordingly, Vietnam will coordinate with concerned ministries and sectors to discuss and work on issues that the US cares about in the spirit of cooperation, the two sides are win-win, towards harmonious and fair trade relations under the Cooperation Action Plan between the two countries.
At the same time, the SBV continues to operate monetary policy to control inflation, stabilize the macroeconomics, support economic growth in a reasonable way, operate the exchange rate flexibly, in accordance with macro balances, market developments and monetary policy objectives, not to create an unfair international trade competitive advantage.
Source: enternews.vn – Translated by fintel.vn