The State Bank of Vietnam (SBV) has recently adjusted the VND/USDexchange rate up by one percent. The adjustment has received a positiveresponse and boosted confidence, the Vietnam Economic News reported.
Theaverage interbank exchange rate was adjusted to increase from 21,036VND to 21,246 VND per USD. Together with exchange rate adjustment,ceiling and floor levels reach 21,458 VND and 21,034 VND per USD,respectively.
SBV decided to adjust exchange rate aftercarefully considering macroeconomic factors. According to SBV’s MonetaryPolicy Department Director Nguyen Thi Hong, since the beginning of thisyear, macroeconomics, monetary market and banking activities have madepositive developments.
Inflation has been curbed at a low level,while the consumer price index (CPI) just increased by 0.2 percent inMay compared to April or an increase of 1.08 percent compared toDecember 2013. In particular, foreign exchange market has beenguaranteed.
“In the context of controlled CPI at a low level inthe first five months of this year and stable exchange rate for nearly ayear, exchange rate adjustment will contribute to promoting exports andsupporting economic growth,” Hong was quoted as saying.
Inaddition to macroeconomic factors, the stable situation in the monetaryand foreign exchange market has made an adjustment. According to SBV, inthe first five months of this year, trade surplus totaled 1.6 billionUSD and overall balance of payment surplus reached more than 10 billionUSD. In particular, foreign exchange reserves reached a record of 35billion USD.
Central Institute for Economic Management (CIEM)Deputy Director, Dr. Vo Tri Thanh said that the transparency ofinformation on the overall balance of payments and foreign exchangereserves had helped create a trust for the market, contributing toreinforcing the value of the VND.
He also added that signs ofstress on the foreign exchange market were often expressed by thedifference between the exchange rate on the free market and banks.However, by tracking actual transactions after exchange rate adjustment,there were no signs of stress on the foreign exchange market.
SBVwill implement measures and tools to stabilise the exchange rate andthe foreign exchange market. While inflation is controlled at a lowlevel, decision on exchange rate adjustment will contribute to promotingexports and supporting economic growth in the second half of this year.
SBVGovernor Nguyen Van Binh said that exchange rate adjustment would notexceed two percent. Many suggestions showed that the exchange rate wouldcontinue to be adjusted in the remaining months of this year. However,Vo Tri Thanh said that if exports face to difficulties, SBV willcontinue to adjust the exchange rate and the possibility of exchangerate adjustment to two percent will reach about 40 percent.
SBVwill continue to flexibly operate monetary policy and closely coordinatewith fiscal policy to control inflation, stabilise macroeconomics andsupport economic growth at a reasonable level, contributing to ensuringsafety for credit institutions. Nguyen Thi Hong said that SBV will adoptappropriate measures, policies and tools to achieve set goals.-VNA
Theaverage interbank exchange rate was adjusted to increase from 21,036VND to 21,246 VND per USD. Together with exchange rate adjustment,ceiling and floor levels reach 21,458 VND and 21,034 VND per USD,respectively.
SBV decided to adjust exchange rate aftercarefully considering macroeconomic factors. According to SBV’s MonetaryPolicy Department Director Nguyen Thi Hong, since the beginning of thisyear, macroeconomics, monetary market and banking activities have madepositive developments.
Inflation has been curbed at a low level,while the consumer price index (CPI) just increased by 0.2 percent inMay compared to April or an increase of 1.08 percent compared toDecember 2013. In particular, foreign exchange market has beenguaranteed.
“In the context of controlled CPI at a low level inthe first five months of this year and stable exchange rate for nearly ayear, exchange rate adjustment will contribute to promoting exports andsupporting economic growth,” Hong was quoted as saying.
Inaddition to macroeconomic factors, the stable situation in the monetaryand foreign exchange market has made an adjustment. According to SBV, inthe first five months of this year, trade surplus totaled 1.6 billionUSD and overall balance of payment surplus reached more than 10 billionUSD. In particular, foreign exchange reserves reached a record of 35billion USD.
Central Institute for Economic Management (CIEM)Deputy Director, Dr. Vo Tri Thanh said that the transparency ofinformation on the overall balance of payments and foreign exchangereserves had helped create a trust for the market, contributing toreinforcing the value of the VND.
He also added that signs ofstress on the foreign exchange market were often expressed by thedifference between the exchange rate on the free market and banks.However, by tracking actual transactions after exchange rate adjustment,there were no signs of stress on the foreign exchange market.
SBVwill implement measures and tools to stabilise the exchange rate andthe foreign exchange market. While inflation is controlled at a lowlevel, decision on exchange rate adjustment will contribute to promotingexports and supporting economic growth in the second half of this year.
SBVGovernor Nguyen Van Binh said that exchange rate adjustment would notexceed two percent. Many suggestions showed that the exchange rate wouldcontinue to be adjusted in the remaining months of this year. However,Vo Tri Thanh said that if exports face to difficulties, SBV willcontinue to adjust the exchange rate and the possibility of exchangerate adjustment to two percent will reach about 40 percent.
SBVwill continue to flexibly operate monetary policy and closely coordinatewith fiscal policy to control inflation, stabilise macroeconomics andsupport economic growth at a reasonable level, contributing to ensuringsafety for credit institutions. Nguyen Thi Hong said that SBV will adoptappropriate measures, policies and tools to achieve set goals.-VNA
