HANOI (Reuters) – Vietnam will pay more attention to its monetary policy as it is not only a domestic matter but the a concern for the country’s big trade partners, a central bank deputy governor said on Sunday, days after the U.S. Treasury’s semi-annual currency report https://www.reuters.com/business/finance/us-treasury-says-vietnam-taiwan-exceed-currency-thresholds-no-manipulator-labels-2021-12-03.

On Friday, the U.S. Treasury reported that Vietnam was exceeding its foreign exchange, current account and trade surplus thresholds. But, they were “satisfied” with Vietnam’s progress on exchange rate issues.

Pham Thanh Ha (deputy governor of the central bank) stated that the bank took the issue seriously and had implemented a monetary policy to address them.

Ha stated, “We need to pay closer attention to the implementation of our monetary policy as it has no impact on our domestic economic but does have an effect on our major trade partners.”

“Vietnam will continue to implement monetary policy in an observant and flexible way.”

Ha stated that the central had bought approximately $25 billion in dollars during the last two years to inject money into the banks and increase the economy.

He said that the bank could, in some cases, implement measures to reduce liquidity or market interest rates, given rising inflation risk.