Vietnam Undervalued Its Currency, finds U.S. Treasury

Vietnam undervalued its currency

In a major revelation, the U.S. Treasury Department in an exploration found that in the year 2019, Vietnam undervalued its currency by approximately 4.7 per cent. A letter received by the U.S. Commerce Department revealed it. 

Interestingly, the central bank of the nation, the SBV (State Bank of Vietnam) did a net purchase worth $ 22 billion (foreign currencies) the previous year. It had the undervaluing effect on dong up to 5.2 per cent, says the letter. 

As per the estimation, the purchases pulled down the real effective exchange rate of Vietnam by 3.5% to 4.8%. 

Meanwhile, the Ministry of Foreign Affairs, Vietnam hasn’t made any response regarding the recent expose. 

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