Vietnam reiterates Dong policy after manipulator label dropped

Vietnam’s central bank reiterated its exchange-rate management policy was in line with other economic goals after the U.S. Treasury Department removed the nation from its currency manipulator list.

The State Bank of Vietnam said its monetary policies are not meant “to create an unfair competitive advantage in international trade” for Vietnam, and are intended to control inflation and support growth, according to a statement on Saturday.

“The State Bank has applied measures to gradually improve the flexibility of the exchange rates while maintaining the foreign currency market in a stable manner,” it said. “The U.S. Treasury Department has recorded positive developments in Vietnam’s foreign currency market and the central bank’s performances.”

Vietnam’s top leaders have made resolving trade and currency tensions with the U.S., its largest single export market, a top priority. The U.S. on Friday refrained from designating any trading partner as a currency manipulator in the Biden administration’s first foreign-exchange policy report, even as Switzerland, Taiwan and Vietnam met thresholds for the label.

The Vietnamese central bank said it will continue to “pro-actively work” on issues that have concerned the U.S. to ensure a “sustainable and harmonious” trade relationship.