HCMC – The U.S. Department of the Treasury announced on June 5 it has not labeled any major trading partners, including Vietnam, as currency manipulators in 2024.
The assessment was part of its semi-annual currency report. However, Vietnam remains on a “monitoring list” for foreign exchange practices, alongside eight other economies. These include China, Japan, South Korea, Taiwan, Singapore, Germany, Ireland, and Switzerland, reported the Vietnam News Agency.
The monitoring list expanded to nine economies with the additions of Ireland and Switzerland. These countries were added due to large trade and current account surpluses with the U.S.
Economies are automatically included on the list if they meet two criteria: a trade surplus of at least US$15 billion with the U.S. and a global current account surplus exceeding 3% of their gross domestic product (GDP), coupled with persistent one-sided net foreign exchange purchases.
While not formally labeled a currency manipulator, China received a stern warning from the U.S. Treasury. The report cited China’s “lack of transparency around its exchange rate policies and operations”. This assessment comes as the Chinese Yuan faces depreciation pressure.
The report, covering the final year of the Biden administration, was released hours after President Donald Trump’s initial phone call with Chinese President Xi Jinping since re-entering the White House. The call occurred amid ongoing trade tensions and a recent dispute over essential minerals between the two nations.
During his previous term, Trump designated China a currency manipulator. However, the U.S. Treasury removed China from the list in January 2020 when a trade agreement was signed in Washington.
