Vietnam seeks avoidance as currency manipulator in future
Saigon Investment, 06 May 2021
Professor Eswar Prasad at Cornell University believes that the US Treasury report this time includes more intensive analysis and shows a less overtly political approach than previous reports during the Trump Administration. However, to avoid being labeled as a currency manipulator again in the future, Vietnam needs to do much more concerning trade and currency issues, rather than just tackling short term problems.
Subjective decision
The fact that the US labeled Vietnam and Switzerland as currency manipulators is not a new issue, rather there was a warning back in 2019. In the third quarter of this year, the US Tracking Currency Manipulation Department included Vietnam among the top countries with enhanced engagement, via statement on the Council on Foreign Relations website. This was done according to the US Treasury Department Evaluation Criteria that evaluates whether or not an economy is a currency manipulator.
