Vietnam is not intended to create unfair international trade advantage via its management of foreign exchange rate, which was instead to ensure macroeconomic stability, the country’s central bank said on Thursday.
In a report released Wednesday, the U.S. Treasury Department named Vietnam and Switzerland as currency manipulators, and added three new names to a watchlist of countries it suspects of taking measures to devalue their currencies against the dollar.
In response to the allegation, the State Bank of Vietnam, the country’s central bank, said it has for years been managed in a way to contain inflation, ensure macroeconomic stability and not to create unfair trade advantages.
“The bilateral trade surplus with the United States and the current account surplus is the result of a range of factors, including those related to the peculiarities of the Vietnamese economy,” the bank said in a statement released Thursday.
The recent intervention in buying foreign currencies by the bank is aimed at ensuring the smooth operation of the foreign currency market in the context of an abundant supply of foreign currencies and contributing to macroeconomic stability.
Moreover, the intervention is to consolidate Vietnam’s foreign currency reserves, which are at a low level compared to other countries in the region, in order to enhance the national financial and monetary security.
The central bank said it would work with relevant authorities to ensure a “harmonious and fair” trade relationship.
At the same time, it will continue to manage exchange rates flexibly, in line with the macro targets, market developments and monetary policy goals, which are not aimed at creating unfair international trade advantage, according to the statement.