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US resolves currency dispute with Vietnam

Biden administration deal removes an irritant in relations between the two countries

The US has reached a deal with Vietnam to resolve a dispute over the south-east Asian nation’s currency that had soured economic relations between the two countries during Donald Trump’s presidency.

Janet Yellen, the US Treasury secretary, announced the agreement at the end of a meeting with Nguyen Thi Hong, governor of the State Bank of Vietnam, on Monday, in a move that could stave off the threat of punitive tariffs on the Asian nation due to its currency practices.

“I believe the State Bank of Vietnam’s attention to these issues over time not only will address Treasury’s concerns, but also will support the further development of Vietnam’s financial markets and enhance its macroeconomic and financial resilience,” Yellen said in a statement.

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