Hanoi (VNA) – Foreign exchange rates are likely to rise strongly due to concerns that the US-China trade war may be escalating, said Director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh. The official said so while releasing a report on Vietnamese macro-economy for the second quarter announced by the VEPR under the University of Economics, an affiliate of the Hanoi National University, on July 11, affirming that the US and China are particularly significant trade partners to Vietnam. While the US is the largest importer of Vietnamese goods, accounting for nearly one-fifth of Vietnam’s total export revenue, Vietnam also imports the most goods from China with roughly a quarter of the total import value. Once the Chinese yuan loses value, Vietnam’s trade balance with China will be affected as low-cost Chinese goods will flood into the country. In the face of the US Federal Reserves (Fed)’ monetary tightening and Chinese … [Read more...] about Foreign exchange rates likely to rise amidst US-China trade war
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VN monetary policies do not create unfair gains in int'l trade: SBV The State Bank of Viet Nam (SBV) will be consistent in regulating monetary policies according to market developments, with no aim for an unfair competitive edge in international trade. … [Read more...] about Vietnam c.bank responds to US’s latest forex exchange report
Hanoi (VNA) – The State Bank of Vietnam (SBV) said it will continue coordinating with concerned Vietnamese ministries and agencies to communicate with the US regarding the US Department of Treasury’s latest report on macroeconomic and foreign exchange policies of major trading partners of the US. The report placed Vietnam on the monitoring list on currency practice along with China, Japan, the Republic of Korea, Germany, Italy, Ireland, Singapore, Malaysia and Switzerland. The SBV noted it will also continue implementing monetary policies to control inflation, maintain a stable macro-economy, support economic growth and flexibly manage the forex rates in line with market developments and the monetary policies’ objectives, so as to not create unfair competition in foreign trade. According to the SBV, the US Department of Treasury on January 14 issued a Semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US which … [Read more...] about SBV responds to US’s latest forex exchange report
In its semiannual report, the U.S. Treasury reviews major American trading partners and determines whether they are currency manipulators based on the following criteria: a significant bilateral trade surplus with the U.S. of at least $20 billion over a 12-month period; a material current account surplus at least 2 percent of gross domestic product (GDP) over a 12-month period; and the occurrence of persistent, one-sided intervention demonstrated by the trading partner repeatedly conducting net purchases of foreign currency in at least 6 out of 12 months, with these net purchases totaling at least 2 percent of its GDP over a 12-month period. … [Read more...] about Vietnam stuck on US currency manipulation watchlist
The SBV still set a 0 percent interest rate for USD deposits for both individual and entity customers. Meanwhile, the VND deposit rate has been stable since the beginning of this year. The difference between USD and VND deposit interest rates is quite high amid moderate inflation, prompting people to sell US dollars and hold Vietnamese dong, making it easier for the SBV to maintain a reasonable VND/USD exchange rate. … [Read more...] about How will USD exchange rate move in 2019?