The State Bank of Vietnam. (Photo: Government Newspaper)

The State Bank of Vietnam (SBV) has repeatedly affirmed that the consistent target of Vietnam’s monetary and foreign exchange policies is to control inflation, stabilize the macro-economy, and ensure the safety of credit institutions. It has been making efforts to modernize and improve the transparency of its monetary and foreign exchange policy frameworks.

The SBV said the report’s assessment is based on three criteria: trade surplus with the US, current account surplus, and persistent, one-sided intervention in the foreign currency market.

In the report, the US Treasury Department placed seven economies on the watch list: China, the Republic of Korea, Germany, Malaysia, Singapore, Switzerland, and Taiwan, China. It found that no major trading partner manipulated currency during the period from January to December 2022. During that period, Vietnam exceeded only one of the three criteria (trade surplus), so it was excluded from the list.

The SBV said that at bilateral meetings, the US Treasury Department praised the SBV’s governance of monetary and foreign exchange policies, which have managed to sustain the stability of Vietnam’s financial market, monetary market, and macro-economy despite many difficulties and challenges.