Vietnam c.bank responds to US’s latest forex exchange report

The State Bank of Vietnam (SBV) said it will continue coordinating with concerned Vietnamese ministries and agencies to communicate with the US regarding the US Department of Treasury’s latest report

on macroeconomic and foreign exchange policies of major trading partners of the US.

Vietnam c.bank responds to US’s latest forex exchange report

Foreign currency exchange at the Ho Chi Minh City Development Bank.


The report placed Vietnam on the monitoring list on currency practice along with China, Japan, the Republic of Korea, Germany, Italy, Ireland, Singapore, Malaysia and Switzerland.

The SBV noted it will also continue implementing monetary policies to control inflation, maintain a stable macro-economy, support economic growth and flexibly manage the forex rates in line with market developments and the monetary policies’ objectives, so as to not create unfair competition in foreign trade.

According to the SBV, the US Department of Treasury on January 14 issued a Semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US which establishes a Monitoring List of countries that merit close attention to their currency practices and macroeconomic policies.

In the report, the department reviewed 20 major US trading partners with bilateral goods trade with the US of at least 40 billion USD annually against the thresholds it has established for the three criteria – a significant bilateral trade surplus with the US at at least 20 billion USD, a material current account surplus at at least 2 percent of GDP, and persistent, one-sided intervention occurs when net purchases of foreign currency are conducted repeatedly, in at least 6 out of 12 months, and these net purchases total at least 2 percent of an economy’s GDP over a 12-month period.

 

This is the second time Vietnam has been named in the report. The country was first mentioned in the May 2019 report as it met two criteria on bilateral goods trade with the US and a material current account surplus.

The January 2020 report keeps Vietnam on the list even though it only met one criterion on goods trade surplus with the US, which continues to rise significantly to reach 47 billion USD over the four quarters through June 2019. Over this same period, Vietnam’s current account balance steadily narrowed, to 1.7 percent of GDP while net purchases of foreign exchange were 0.8 percent of GDP, it adds.

The report also concludes that during the period, no major trading partner met all three criteria to be labelled a currency manipulator. VNA

VN monetary policies do not create unfair gains in int'l trade: SBV

VN monetary policies do not create unfair gains in int'l trade: SBV

The State Bank of Viet Nam (SBV) will be consistent in regulating monetary policies according to market developments, with no aim for an unfair competitive edge in international trade.  

Vietnam's monetary market 2019: earlier forecasts missed the mark

Vietnam's monetary market 2019: earlier forecasts missed the mark

When the State Bank of Vietnam (SBV) late last week slashed the dollar purchase price, the greenback prices quoted by commercial banks were adjusted immediately.

 
 

Other News

.
Vietnamese businesses ready to be connected with “avenue” EVFTA
Vietnamese businesses ready to be connected with “avenue” EVFTA
BUSINESSicon  22/05/2020 

Economic cooperation between Vietnam and the European Union (EU) is about to turn a new page in history as the Vietnamese National Assembly is moving very close to ratifying the EU-Vietnam Free Trade Agreement (EVFTA).

Optimising the recovery route ahead for Vietnam as a whole
Optimising the recovery route ahead for Vietnam as a whole
BUSINESSicon  21/05/2020 

As the old saying goes, “What does not break you makes you stronger.” This is so true for Vietnam, not only throughout its rich history but also in the current context.

P/B, P/E ratios at five-year low, banks should be good options
P/B, P/E ratios at five-year low, banks should be good options
BUSINESSicon  21/05/2020 

With average price-to-earnings (P/E) and price-to-book (P/B) ratios at a five-year low, bank stocks are among the good options available for investors right now, analysts said.

National Assembly discuss EVFTA's implementation
National Assembly discuss EVFTA's implementation
BUSINESSicon  21/05/2020 

Vice President Dang Thi Ngoc Thinh said the EVFTA was a comprehensive and fair deal that represented both Vietnam and the EU's rights and interests at a National Assembly meeting on Wednesday in Hanoi.

IPs mushroom as Vietnam seeks to grab post-pandemic opportunities
IPs mushroom as Vietnam seeks to grab post-pandemic opportunities
BUSINESSicon  21/05/2020 

This month ground was broken for Viet Phat Industrial Park, one of the largest in the country, in Long An Province.

Proposal for ratification of EVIPA submitted to National Assembly
Proposal for ratification of EVIPA submitted to National Assembly
BUSINESSicon  21/05/2020 

Vice President Dang Thi Ngoc Thinh presented a proposal from the State President to the National Assembly (NA) for ratifying the EU-Vietnam Investment Protection Agreement (EVIPA), at the ninth session of the 14th NA in Hanoi on May 20.

Government actions not enough to revive business sector: academic
Government actions not enough to revive business sector: academic
BUSINESSicon  21/05/2020 

The Government needs to do more to revive the business sector, Dr Tran Hung Son, Deputy Director of the Institute for Development and Research in Banking Technology under the Vietnam National University-HCM City has said.

A repeat of the 2011-2013 real estate crisis?
A repeat of the 2011-2013 real estate crisis?
BUSINESSicon  22/05/2020 

With purchasing power dropping dramatically and liquidity becoming alarminging weak, the real estate market is witnessing a repeat of the 2011-2013 crisis.

Foreigners yet to be granted land use rights in Vietnam
Foreigners yet to be granted land use rights in Vietnam
BUSINESSicon  20/05/2020 

Foreign nationals entering Vietnam are not granted land use rights as enjoyed by local citizens, according to a statement made by the Ministry of Natural Resources and Environment.

Two more payment intermediary services licensed in Viet Nam
Two more payment intermediary services licensed in Viet Nam
BUSINESSicon  20/05/2020 

The State Bank of Viet Nam (SBV) has issued licences to two non-banking organisations to provide intermediary payment services.

Transferring solar projects to foreign investors 'normal': MoIT
Transferring solar projects to foreign investors 'normal': MoIT
BUSINESSicon  20/05/2020 

The Ministry of Industry and Trade (MoIT) has said that transferring all or part of a solar power project was normal according to market rules and the Investment Law.

Temporarily halting petrol and oil imports must be considered carefully: ministry
Temporarily halting petrol and oil imports must be considered carefully: ministry
BUSINESSicon  20/05/2020 

The proposal of temporarily halting the import of petrol and oil must be carefully considered to ensure national energy security and harmonise...

Vietnam slashes registration fee by half to rev up domestic car sales
Vietnam slashes registration fee by half to rev up domestic car sales
BUSINESSicon  20/05/2020 

The decision, set to valid until the end of 2020, would help customers save thousands of dollars.

Vietnam faces fierce competition to attract capital flight from China
Vietnam faces fierce competition to attract capital flight from China
BUSINESSicon  21/05/2020 

With its early success in containing the Covid-19 pandemic, Vietnam is having a jump-start among potential investment destinations in attracting a new wave of FDI.

Vietnam in strong position to defend against external shocks: HSBC
Vietnam in strong position to defend against external shocks: HSBC
BUSINESSicon  20/05/2020 

With fewer concerns about currency and external stability, Vietnam’s central bank is likely to be more comfortable with delivering interest rate cuts to support growth.

Vietnam’s North-South Expressway project gets fresh air
Vietnam’s North-South Expressway project gets fresh air
BUSINESSicon  20/05/2020 

Vietnam is stimulating key transport projects and other infrastructure ones to support development and economic recovery in post-Covid-19. And this is a good opportunity for investors.

Vietnam budget transparency score in 2019 significantly improved: OBS 2019
Vietnam budget transparency score in 2019 significantly improved: OBS 2019
BUSINESSicon  20/05/2020 

Overall, Vietnam is ranked 77 out of 117 countries and territories, up 14 places against 2017.

Vietnam raises monthly taxable personal income threshold by 22%
Vietnam raises monthly taxable personal income threshold by 22%
BUSINESSicon  20/05/2020 

With the new threshold in place, set to take effect from January 1, 2020 retrospectively, there would be more than 1 million people whose incomes are not taxable.

Decisive reforms needed for Vietnam to realize full benefits of EVFTA: WB
Decisive reforms needed for Vietnam to realize full benefits of EVFTA: WB
BUSINESSicon  20/05/2020 

The EU-Vietnam trade deal is the largest new-generation free trade agreement in Vietnam’s history in terms of direct benefits.

Hanoi announces lists of housing projects open for foreign ownership
Hanoi announces lists of housing projects open for foreign ownership
BUSINESSicon  20/05/2020 

Foreigners are eligible to own houses in a tenure of 50 years with renewal possibility.

 
 
 
Leave your comment on an article

OR QUICK LOGIN