U.S. Treasury says Vietnam deliberately undervalued currency in 2019

[snoop1130]

U.S. Treasury says Vietnam deliberately undervalued currency in 2019

By David Lawder

 

 

WASHINGTON (Reuters) - The U.S. Treasury has determined that Vietnam's currency was deliberately undervalued in 2019 by about 4.7% against the dollar, according to a new currency valuation assessment sent to the U.S. Commerce Department late on Tuesday.

 

In the assessment associated with a Commerce anti-subsidy investigation into vehicle tire imports from Vietnam, the Treasury said the undervaluation was the result of Vietnamese "government action on the exchange rate."

 

The assessment is the first issued by the Treasury under a new U.S. rule that allows the Commerce Department to consider currency undervaluation as a form of subsidy when determining anti-subsidy duties, potentially increasing them.

 

The determination also could increase the chances that the Treasury designates Vietnam a "currency manipulator" when it issues its long-delayed semi-annual currency report. Such a designation would require Treasury Secretary Steven Mnuchin to seek bilateral consultations with Hanoi to try to correct the situation.

 

In its assessment letter to Commerce, the Treasury said Vietnam made $22 billion state foreign exchange purchases in 2019, including through the State Bank of Vietnam, which pushed down Vietnam's real effective exchange rate by 3.5% to 4.8%, the Treasury said.

 

It said the country's action caused the dong exchange rate, which was a nominal 23,224 per dollar in 2019, to be about 1,090 dong lower than levels consistent with equilibrium real exchange rates.

 

-- © Copyright Reuters 2020-08-26

 

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[sammieuk1]

Talking of currency manipulation anywhere else in close proximity for example on the radar ????

[Mavideol]

maybe so, but one could look at it the other way around and claim that was mainly due to the US keeping the dollar undervalued to increase the US exports as well, always 2 versions to a fact. US needed to burst it's economy and in order to do so they did as it fitted (will not go into details to avoid trolls)

[gazza4]

1 hour ago, Mavideol said:

maybe so, but one could look at it the other way around and claim that was mainly due to the US keeping the dollar undervalued to increase the US exports as well, always 2 versions to a fact. US needed to burst it's economy and in order to do so they did as it fitted (will not go into details to avoid trolls)

Is there anyone left in America who could give an objective , truthfull ,  opinion on any important matter like this?  Haven't they all been sacked, because they wanted to speak of their honest, opinion?

[Scott Tracy]

Doesn't every country manipulate their currency one way or another? 

 

Every time someone issues a 'forecast', this has an effect on a currency. Analysts gazing into their Crystal balls do the same. Predictions can become self fulfilling prophecies.

 

Pot and kettle and the colour black, spring to mind.

[JulesMad]

And again, they are attacking Vietnam...
 

Whatever Vietnam does or doesn't do, it is NOT america's business! Yes I know, usa thinks they can dictate their (president's) will to the world, but when will they/he understand that it is NONE of their f****** business...

[spidermike007]

And the US is not deliberately undervaluing or undermining the dollar? 

 

Those in glass houses. The US sure loves to point their silly and stunningly hypocritical finger at others. However, one thing they have not quite figured out yet, is that they are becoming less relevant by the day. And that shall continue well into the future. 

Edited August 27, 2020 by spidermike007