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US gets its way as Vietnam agrees not to devalue currency

By Dat Nguyen   July 23, 2021 | 08:48 pm PT
US gets its way as Vietnam agrees not to devalue currency
An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy.
The U.S. Trade Representative's office has determined that no tariff action is warranted against Vietnam after its central bank agreed to refrain from "competitive devaluation" of the dong.

"I commend Vietnam for its commitment to addressing U.S. concerns with its currency practices," U.S. Trade Representative Katherine Tai said in a statement.

The recent agreement between the U.S. Treasury and the State Bank of Vietnam "provides a satisfactory resolution of the matter subject to investigation and accordingly that no trade action is warranted at this time," the statement said.

Under the agreement, Vietnam committed not to devalue its currency for trade advantage and to make its monetary and exchange rate policies more transparent.

The deal follows months of U.S. pressure and a rising trade surplus with that country.

The U.S. had declared Vietnam a currency manipulator and threatened to impose punitive tariffs on its exports.

Vietnam rejected this repeatedly, saying it did not manipulate its currency for unfair trade advantages.

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