US, Vietnam pledge to avoid currency manipulation, boost transparency


FILE PHOTO: The State Bank of Vietnam committed to publishing annual data on net positive foreign exchange purchases starting in 2027. - Vietnam News/ANN

HANOI: The United States and Vietnam reaffirmed their commitment to avoid currency manipulation in a joint statement issued by the US Treasury and Vietnam's central bank following high-level consultations, the Treasury said over the weekend.

* Vietnam has been in the Treasury's "monitoring list" of countries warranting close attention for currency practices, along with China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, Switzerland and Thailand.

* The Treasury and the State Bank of Vietnam (SBV) said they would continue close engagement, and reiterated obligations under International Monetary Fund rules not to target exchange rates for competitive advantage.

* The statement said foreign exchange intervention can be appropriate to address volatility in either direction, provided it is aimed at maintaining macroeconomic stability rather than gaining an unfair trade edge.

* The SBV committed to publishing annual data on net positive foreign exchange purchases starting in 2027.

* The SBV also pledged to disclose foreign exchange reserves data and forward positions in line with the IMF's template on international reserves and foreign currency liquidity from 2027. - Reuters

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Vietnam , US , currency manipulation , transparency

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