The Eximbank CEO was one of the high-profile advocates of the Government’s recent move on USD transactions, gold markets and credit growth as a necessary step to curb inflation and stabilise the macro economy.
Truong Van Phuoc of Eximbank described the move, officially called Resolution 11, as “suitable” amidst the current unstable macro economy and escalating inflation. He said he was pretty sure that it will receive strong support from business circles, especially bankers and investors.
“With these firm measures, the economy will more or less suffer the loss of growth in the present stage to look forward to some improvement in the future,” said the import-export bank executive.
He added that the resolution, which orders State-owned enterprises to sell hard currencies to banks, would help reduce speculation and increase supply.
Another advocate was Nguyen Duc Huong, Vice President of the Lienvietbank Executive Board. He said the State Bank of Vietnam (SBV) decision to adjust the credit growth target from 23 percent down to 20 percent to curb inflation will force banks and enterprises to further deliberate their projects and potential investments.
“The monetary market will certainly see positive development just in a short period of time,” the banker said with strong confidence.
The SBV is due to submit a draft decree to the Government in the second quarter of the year, calling for closure of the free market on gold bars.
In this regard, former SBV governor Cao Sy Kiem emphasised, “It is a sound policy which should come into force immediately”. He argued that the import of gold bars would increase trade deficits and impose pressures on inflation.
SBV Governor Nguyen Van Giau told reporters on March 1 that the central bank would closely monitor and release forecasts on the developments of international gold prices as well as domestic demand and supply in order to handle the gold imports-exports flexibly.
In case the domestic gold price was lower than the international market, the SBV will authorise some institutions to buy in order to balance the domestic market, or allow exports to earn foreign currencies, he added.
“The new policy will not cause any impact on people’s interests,” he concluded.
The Government’s move has also received positive support from international experts, including President of the Asian Development Bank (ADB) Haruhiko Kuroda and Dragon Capital CEO Dominic Scriven./.
Truong Van Phuoc of Eximbank described the move, officially called Resolution 11, as “suitable” amidst the current unstable macro economy and escalating inflation. He said he was pretty sure that it will receive strong support from business circles, especially bankers and investors.
“With these firm measures, the economy will more or less suffer the loss of growth in the present stage to look forward to some improvement in the future,” said the import-export bank executive.
He added that the resolution, which orders State-owned enterprises to sell hard currencies to banks, would help reduce speculation and increase supply.
Another advocate was Nguyen Duc Huong, Vice President of the Lienvietbank Executive Board. He said the State Bank of Vietnam (SBV) decision to adjust the credit growth target from 23 percent down to 20 percent to curb inflation will force banks and enterprises to further deliberate their projects and potential investments.
“The monetary market will certainly see positive development just in a short period of time,” the banker said with strong confidence.
The SBV is due to submit a draft decree to the Government in the second quarter of the year, calling for closure of the free market on gold bars.
In this regard, former SBV governor Cao Sy Kiem emphasised, “It is a sound policy which should come into force immediately”. He argued that the import of gold bars would increase trade deficits and impose pressures on inflation.
SBV Governor Nguyen Van Giau told reporters on March 1 that the central bank would closely monitor and release forecasts on the developments of international gold prices as well as domestic demand and supply in order to handle the gold imports-exports flexibly.
In case the domestic gold price was lower than the international market, the SBV will authorise some institutions to buy in order to balance the domestic market, or allow exports to earn foreign currencies, he added.
“The new policy will not cause any impact on people’s interests,” he concluded.
The Government’s move has also received positive support from international experts, including President of the Asian Development Bank (ADB) Haruhiko Kuroda and Dragon Capital CEO Dominic Scriven./.
