Logo of Phnom Penh Post newspaper Phnom Penh Post - Central bank: VN’s monetary policies do not create unfair gains in international trade

Central bank: VN’s monetary policies do not create unfair gains in international trade

Content image - Phnom Penh Post
Headquarters of the State Bank of Viet Nam in Ha Noi. Photo SBV/VIET NAM NEWS/ANN

Central bank: VN’s monetary policies do not create unfair gains in international trade

The State Bank of Vietnam (SBV) will be consistent in regulating monetary policies according to market developments, with no aim for an unfair competitive edge in international trade, it said in a statement on Tuesday.

The central bank released the statement after the US Treasury continued to name Vietnam in a list of ten countries to be monitored for alleged currency manipulation, in its semi-annual Report on Macro-economic and Foreign Exchange Policies of Major Trading Partners of the United States delivered to Congress on Tuesday.

“The SBV has never used exchange rates to compete with trade partners and never purposely intervened in monetary policy to help with exports,” the Vietnamese central bank said.

The SBV said it would continue to regulate monetary policy to control inflation, stabilise the macro-economy and support economic growth at a reasonable level.

“We will continue to regulate the exchange rates flexibly in line with domestic and international market movements as well as Vietnam’s economic characteristics, with no aim of creating an unfair international trade competitive advantage,” it said.

During a conference to implement tasks for the banking industry in 2020 earlier this month, SBV governor Le Minh Hung also affirmed that one of Vietnam’s priorities this year was to continue working with major trading partners to prove that Vietnam does not manipulate its currency.

“The SBV never uses monetary and foreign-exchange policies for unfair trade gain. Vietnam does not manipulate the currency,” Hung stressed.

When on the list, the US Treasury will continue to look at data on Vietnam’s trade, current account balance, and macro-economic and monetary policy, the SBV said.

“The US Treasury will possibly discuss issues with relevant Vietnamese agencies when necessary. The SBV, in conjunction with other Vietnamese ministries and agencies, will continue to share information with them and co-operate to tackle issues of concern,” it said.

The US Treasury’s report found that ten major trading partners warrant placement on Treasury’s “Monitoring List” of major trading partners that merit close attention to their currency practices include China, Germany, Ireland, Italy, Japan, Korea, Malaysia, Singapore, Switzerland and Vietnam.

In a report in May last year, Vietnam for the first time became one of nine countries to be monitored due to a trade surplus with the US and a highly positive current account balance. The report also said that a listed country would be monitored in the next two reviews.

In the latest report this month, Vietnam remained on the watch list of currency manipulators even though it has satisfied only one condition, a trade surplus.

Vietnam’s trade surplus with the US rose to almost $47 billion last year from $34.87 billion in 2018.

The country’s current account balance accounted for 1.7 per cent of its gross domestic product (GDP) while its net foreign exchange purchases were equal to 0.8 per cent of its GDP. Vietnam’s GDP reached $262 billion last year.



  • School reopening to be postponed until November

    Minister of Education Hang Chuon Naron on Tuesday wrote to Prime Minister Hun Sen requesting a delay of school reopening across the Kingdom until November, when the new academic year begins. In his letter, Chuon Naron said the postponement is warranted to avoid the new

  • Foreigners in Kingdom must now register in FPCS system

    The Ministry of Interior’s General Department of Immigration (GDI) announced that it would not grant visa extensions to foreigners staying in Cambodia if their names are not listed on the Foreigners Present in Cambodia System (FPCS) by July 1. Foreign nationals can register in the

  • Covid-19 at ‘alarming rate’, health ministry says

    The Covid-19 risk level for individual transmission is at an “alarming rate” in the Kingdom and its probability is “not low”, warned Health Ministry spokesperson Or Vandine. “Cambodia’s coronavirus scenario is classified as being at an early stage of the pandemic because of ongoing

  • Mandatory quarantine for 30,000 workers begins

    Some of the roughly 30,000 workers from factories and enterprises across the Kingdom who went on leave during Khmer New Year began their government-imposed 14-day quarantine on Monday. Speaking at a press conference while visiting workers at the Phnom Penh Special Economic Zone on Monday, Ministry

  • Unemployed to get $40 per month

    The Ministry of Labour and Vocational Training has instructed enterprises, business owners and travel agencies in five provinces to prepare the proper forms for the suspension of employment contracts. This, it said, will make it easier for the ministry to transfer $40 a month to workers

  • Gov’t travel ban flouted

    While the majority of Cambodians have paid heed to Prime Minister Hun Sen’s order to stay put and not travel during the Khmer New Year – the holidays of which were also postponed – several hundred have left Phnom Penh nonetheless. They have allegedly breached provincial

  • G20 energy ministers struggle to finalise oil output cuts

    Top oil producers struggled to finalise production cuts during a virtual summit held by Group of 20 (G20) energy ministers on Friday, despite US President Donald Trump’s mediation efforts to end a standoff with Mexico. The final G20 communique appeared to gloss over simmering divisions

  • Kingdom revises travel restriction order

    The government on Friday eased the district and provincial border restrictions issued on Thursday. People are now allowed to cross districts within their provinces. Phnom Penh and Kandal province are to be treated as a single region where people are allowed to travel freely. In

  • Private schools struggling

    The Cambodian Higher Education Association has claimed that 113 private educational establishments are facing bankruptcy because of their inability to pay rent and staff salaries in light of nationwide school closures caused by the Covid-19 outbreak. It said the financial trouble started when the Ministry of

  • Khmer New Year holidays postponed

    In an effort to halt Covid-19 infections in the Kingdom, Prime Minister Hun Sen has postponed the Khmer New Year holidays scheduled from April 13 to 16. While the people will not have their usual break, nor will there be any public celebrations or gatherings at pagodas,