USA Currency Manipulation Watchlist cleared
January 17, 2020 | 0 Comments
The US administration cleared China, Vietnam, and Thailand from the watchlist of currency manipulators accused of heavy state intervention in the markets. They did not meet the threshold levels of intervention last year. This intervention in markets is by governments to buy dollars and sell their local currency thereby reducing the local currency's exchange value to boost exports. However Citibank analysts pointed out that Vietnam has transacted heavily on the currency markets in 2019 to depress the local VND and they run the risk of counter action or penalties. Since Vietnam does have a trade surplus, there is some possibility of the VND appreciating in 2020 if left alone.