State Bank of Vietnam, US Treasury Department to maintain close ties

The officials shared the view that their countries have multiple opportunities to strengthen cooperation towards the common target of promoting strong, inclusive, and sustainable growth via effective macro-economic policies and financial stability maintenance.

They said the SBV and the US Treasury Department have maintained close cooperation and set up channels for frequent and effective communication, thereby helping enhance mutual understanding, boost cooperation and information sharing, and deal with emerging issues in a timely manner.

The US Treasury Department recognised the results of the SBV’s handling of common challenges in emerging markets

Hong informed her guest about Vietnam’s socio-economic development achievements during 2011 - 2022, including those in macro-economic stabilisation amid common challenges and difficulties in the world.

She affirmed that Vietnam’s monetary and exchange rate policy is aimed at the consistent target of helping control inflation, stabilise the macro-economy, and guarantee safety for the credit institution system.

The SBV has governed the exchange rates in a proactive and flexible manner that matches the development level of the foreign exchange market and other economic factors. It does not use the exchange rate policy to create an unfair trade competition advantage, and has worked to ensure stable and smooth operations of the foreign exchange market to help with macro-economic stability, the Governor went on.

Yellen congratulated Vietnam on its macro-economic attainments and the monetary policy’s effectiveness. She also highly valued the SBV’s efforts in modernising and improving the transparency of the governance framework of Vietnam’s monetary and foreign exchange rate policy to enhance macro-economic stability and guarantee the safety and health of the banking system.

The Secretary said the measures taken by the SBV over the recent past were highly important to strengthening the macro-economic stability and the adaptability of the Vietnamese economy in the face of the global financial market’s volatility and external shocks.

Pledging to maintain close cooperation in the spirit of mutual respect, they agreed to hold frequent dialogue at all levels on macro-economic, financial, monetary policies; further enhance mutual understanding and assistance; and promote technical support in terms of banking supervision and financial stabilisation.

Following the meeting, Hong and Yellen issued a joint statement.