The confidence of foreign investors in Vietnam's economy continuedto rise thanks to the improvement of macro-economic stability, theNational Finance Supervision Committee (NFSC) has said.
Thecountry's credit risk level, measured by the Credit Default Swap (CDS)coefficient, had been lowered from over 300 points in the same periodlast year to around 220 points on July 23.
The committeesaid in its economic report for the first seven months of the yearreleased on August 1 that the monetary and financial market has beenimproved, contributing to the economic stability and reducing risks.
Interestrates fell from late last year and liquidity of the banking system wasmuch better than in the previous period as Lease Rental Discounting(LRD) continued to decline.
It added that the exchangerates had been fluctuating in a short period after the State Bank ofVietnam adjusted the official exchange rate, mainly due topsychological factors.
In addition, there were some otherfactors causing slight effects on the exchange rate, including demand tobalance and adjust forex positions of commercial banks and businesses.
Foreigninvestors adjusted investment portfolios as they withdrew approximately450 million USD on the bond market and around 100 million USD on thestock market.
However, the committee said the exchange ratefluctuation would be temporary and supply and demand of foreigncurrency in the second half of the year would be stable. Foreignreserves were also forecast to continue to increase.-VNA