US gets its way as Vietnam agrees not to devalue currency
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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.
Questions & Answers
Q.What prompted the U.S. To consider tariff action against Vietnam?
What prompted the U.S. To consider tariff action against Vietnam?
The U.S. Considered tariffs due to its concerns with Vietnam's currency practices and a rising trade surplus with the country. It had previously declared Vietnam a currency manipulator before this agreement was reached.
Q.What has Vietnam agreed to do regarding its currency?
What has Vietnam agreed to do regarding its currency?
Vietnam has committed not to devalue its currency for trade advantage and to make its monetary and exchange rate policies more transparent. This agreement led to the U.S. Deciding against tariff action.
Q.What was Vietnam's stance on the U.S. Accusation of currency manipulation?
What was Vietnam's stance on the U.S. Accusation of currency manipulation?
Vietnam consistently rejected the accusation that it manipulated its currency. It maintained that it did not engage in such practices for unfair trade advantages, despite U.S. Pressure.
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