US places Vietnam on currency monitoring list
Vietnam is one of 12 economies that have been placed on the US' currency monitoring list, according to the US Department of the Treasury’s semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners
This move comes following the Treasury adding 12 economies to its “Monitoring List” of major trading partners that deserve close attention due to their currency practices and macroeconomic policies. This list is comprised of China, Japan, the Republic of Korea, Germany, Italy, India, Malaysia, Singapore, Thailand, Taiwan (China), Vietnam, and Mexico.
All of these countries, with the exception of Taiwan (China) and Vietnam, both of which were subject to enhanced engagement, were on the Monitoring List in the December 2021 Report.
Furthermore, both Vietnam and Taiwan (China) exceeded the thresholds of fewer than three criteria under the terms of the 2015 Act over the four quarters leading up to December, 2021.
The nation had previously exceeded the thresholds for all three criteria as noted in the December 2021, April 2021, and December 2020 Reports, while Taiwan (China) had also surpassed the thresholds for all three criteria as noted in the December 2021 and April 2021 Reports.
Although the country and Taiwan (China) no longer meet all three criteria for enhanced analysis, the US Treasury will continue to conduct an in-depth analysis of these economies’ macroeconomic and exchange rate policies until they do not meet all three criteria under the 2015 Act for at least two consecutive Reports.
Back in early 2021 the Treasury commenced enhanced bilateral engagement with the nation in accordance with the 2015 Act. As a result of discussions held through the enhanced engagement process, both the US Treasury and the State Bank of Vietnam (SBV) were able to reach an agreement in July, 2021, to address the US Treasury’s concerns relating to Vietnamese currency practices.
Moving forward, the US Treasury will continue to engage closely alongside the SBV in order to monitor Vietnamese progress in addressing their concerns and monitor the progress made by the nation in this regard.