Vietnam refutes US move to label it a currency manipulator
- The US Treasury designated Vietnam and Switzerland currency manipulators and added Taiwan, India and Thailand to its watch list
- But the State Bank of Vietnam said it does not use currency for unfair trade, and will work with US authorities to respond to their concerns
In a statement on its website, the the State Bank of Vietnam said Vietnam’s “exchange rate management in recent years is within its general framework of monetary policy and aims to achieve the consistent goal of controlling inflation, stabilising macroeconomy” and does not create an unfair competitive advantage for the nation.
The Vietnamese dong traded at 23,127 per US dollar, little changed from Wednesday. The benchmark VN Index of Vietnamese stocks lost 1 per cent in early trade and is poised for its biggest decline in a month.
Vietnam’s trade surplus with the US and its current account surplus are the result of a range of factors related to the peculiarities of the Vietnamese economy, the statement said.
The central bank’s recent purchase of foreign currencies “is to ensure the smooth operation of the foreign exchange market in the context of an abundant supply of foreign currencies”, the regulator said.
“It is also contributing to macroeconomic stability and at the same time strengthening foreign exchange reserves which are at low levels compared to other countries in the region to strengthen national monetary and financial security.”