U.S., Vietnam pledge to avoid currency manipulation, boost transparency

- The United States and Vietnam reaffirmed their commitment to avoid currency manipulation in a joint statement issued by the U.S. 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 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.