The State Bank of Vietnam (SBV) will continue stabilising the exchangerate between the VND and the USD, which "will not increase more than 2percent in 2014", Governor Nguyen Van Binh has said.
Speaking at an online conference between the Government and localitieson December 24, he said that the central bank will consider adjustingthe rate flexibly in order to support exports and ensure themacro-economy balance, without greatly affecting the inflation rate.
The SBV successfully maintained forex exchange ratestability within a band of 2-3 percent during the last two years andmarginally devalued the VND by 1 percent in June this year from 20,828VND to 21,036 VND per USD.
At a year-end bankingsector conference last week, Prime Minister Nguyen Tan Dung asked thecentral bank to maintain the VND exchange rate within a 1-2 percent bandduring 2014.
The Government leader also requiredthe country’s foreign exchange reserves to be increased and emphasisedthe need to tightly control the gold market in order to minimise effectson the forex market, interest rates and macro stability.
He reiterated that the SBV should continue to hold the monopoly in theinternational trade of gold. Banks were no longer entitled to acceptgold deposits or lend in gold, and the State Bank was being encouragedto attract home savings in gold to be deposited into the country’sofficial banking sector.
The stable forex markethelped reduce the proportion of foreign currency deposits in thecountry’s total means of payment to 12 percent in 2013 from 12.36percent in 2012 and 15.8 percent in 2011. Foreign currency reserves in2013 also doubled compared to 2011, according to SBV figures quoted byVietnam Investment Review.
At present, theinter-bank exchange rate is lower than that of commercial banks. So, theSBV has bought a large amount of foreign currency for reserves, saidBinh, adding that the country's credit growth has reached 9.5 percentand is expected to be more than 10 percent by the end of this year.
Credit institutions have restructured about 330 trillion VND (15.7billion USD) in debts, equivalent to 10 percent of outstanding debts,for businesses.
The credit institutions have repaid70 trillion VND (3.33 billion USD) of bad debts from their riskprovision fund. The Vietnam Asset Management Company has so far boughtbad debts worth 32 trillion VND (1.5 billion USD), which will be worth35 trillion VND by the end of the year.-VNA
Speaking at an online conference between the Government and localitieson December 24, he said that the central bank will consider adjustingthe rate flexibly in order to support exports and ensure themacro-economy balance, without greatly affecting the inflation rate.
The SBV successfully maintained forex exchange ratestability within a band of 2-3 percent during the last two years andmarginally devalued the VND by 1 percent in June this year from 20,828VND to 21,036 VND per USD.
At a year-end bankingsector conference last week, Prime Minister Nguyen Tan Dung asked thecentral bank to maintain the VND exchange rate within a 1-2 percent bandduring 2014.
The Government leader also requiredthe country’s foreign exchange reserves to be increased and emphasisedthe need to tightly control the gold market in order to minimise effectson the forex market, interest rates and macro stability.
He reiterated that the SBV should continue to hold the monopoly in theinternational trade of gold. Banks were no longer entitled to acceptgold deposits or lend in gold, and the State Bank was being encouragedto attract home savings in gold to be deposited into the country’sofficial banking sector.
The stable forex markethelped reduce the proportion of foreign currency deposits in thecountry’s total means of payment to 12 percent in 2013 from 12.36percent in 2012 and 15.8 percent in 2011. Foreign currency reserves in2013 also doubled compared to 2011, according to SBV figures quoted byVietnam Investment Review.
At present, theinter-bank exchange rate is lower than that of commercial banks. So, theSBV has bought a large amount of foreign currency for reserves, saidBinh, adding that the country's credit growth has reached 9.5 percentand is expected to be more than 10 percent by the end of this year.
Credit institutions have restructured about 330 trillion VND (15.7billion USD) in debts, equivalent to 10 percent of outstanding debts,for businesses.
The credit institutions have repaid70 trillion VND (3.33 billion USD) of bad debts from their riskprovision fund. The Vietnam Asset Management Company has so far boughtbad debts worth 32 trillion VND (1.5 billion USD), which will be worth35 trillion VND by the end of the year.-VNA
