July 26, 2021

United States And Vietnam Reach Deal On Currency Manipulation

On July 19, U.S. Trade Representative Katherine Tai issued a statement announcing that the U.S. Department of the Treasury and the State Bank of Vietnam had reached an agreement under which Vietnam will allow its currency to move in line with market and economic fundamentals.

That statement came after a Treasury Department’s investigation of Vietnam’s currency valuation policies under Section 301 of the Trade Act of 1974 that led to a January 2021 report. The report found Vietnam’s policies were “unreasonable” and were actionable under Section 301. The July 21 agreement allows USTR and the Department of Treasury to “monitor Vietnam’s implementation of its commitments and work with Vietnam to ensure that it addresses the acts, policies, and practices related to the valuation of its currency that were found actionable in the Section 301 investigation.”

The Treasury Department has more about the agreement here.