Over 6 billion USD purchased to raise forex reserves hinh anh 1The State Bank of Vietnam held a meeting in Hanoi on January 9 to launch tasks for the banking sector this year (Photo: VNA)

Hanoi (VNA) – The country net purchased over 6 billion USD in 2018 to raise its foreign exchange reserves, the State Bank of Vietnam (SBV) reported at a meeting in Hanoi on January 9 to launch tasks for the banking sector this year.

SBV Governor Le Minh Hung reported that in 2018, the central bank took concerted measures to achieve the set targets, thus greatly helping control inflation, stabilise the macro-economy, support economic growth and ensure the safe operation of credit organisations.

The monetary policy has been carried out in harmony with other macro-policies, particularly the fiscal and price management ones, helping to keep the average inflation below the ceiling target of 4 percent. 

Interest rates have also been kept stable in spite of the upward trend in the world. Meanwhile, though there was certain pressure, gold prices and the forex market have remained stable.

He elaborated that the proactive and flexible steering of the daily reference exchange rate, liquidity and Vietnamese dong interest rates has helped keep the USD/VND exchange rate steady. As of the end of 2018, the daily reference exchange rate rose by 1.7 – 1.8 percent while the inter-bank rate hiked 2.16 percent from the previous year.

The domestic gold market fluctuated in a narrow trading band despite complex developments in the global market, Hung said, adding that capital resources in gold now tend to be converted into money or other types of assets to serve socio-economic development.

Noting certain difficulties in banking activities, SBV Deputy Governor Dao Minh Tu said in 2019, the central bank will continue keeping a close watch on the macro-economy and the financial market in Vietnam and the world so as to make active, flexible and prudent moves to ensure the stability of the monetary and forex markets.

It will also take effective measures to manage the forex and gold markets, consolidate the forex reserves, curb the dollarisation and enhance trust in the Vietnamese dong.

Additionally, credit institution restructuring and bad debt settlement will be put under strict monitoring. The SBV will also work to improve credit quality at the same time, Tu said.–VNA