The confidence of foreign investors in Vietnam's economy continued to rise thanks to the improvement of macro-economic stability, the National Finance Supervision Committee (NFSC) has said.

The country's credit risk level, measured by the Credit Default Swap (CDS) coefficient, had been lowered from over 300 points in the same period last year to around 220 points on July 23.

The committee said in its economic report for the first seven months of the year released on August 1 that the monetary and financial market has been improved, contributing to the economic stability and reducing risks.

Interest rates fell from late last year and liquidity of the banking system was much better than in the previous period as Lease Rental Discounting (LRD) continued to decline.

It added that the exchange rates had been fluctuating in a short period after the State Bank of Vietnam adjusted the official exchange rate, mainly due to psychological factors.

In addition, there were some other factors causing slight effects on the exchange rate, including demand to balance and adjust forex positions of commercial banks and businesses.

Foreign investors adjusted investment portfolios as they withdrew approximately 450 million USD on the bond market and around 100 million USD on the stock market.

However, the committee said the exchange rate fluctuation would be temporary and supply and demand of foreign currency in the second half of the year would be stable. Foreign reserves were also forecast to continue to increase.-VNA