A report by securities firm SSI on the financial and monetary market says deposit interest rates are likely to be cut by 0.5- 1 percentage point this year, and lending interest rates would also be cut by at least 0.5 percentage points as required by the Government.
Foreign exchange rates are likely to rise strongly due to concerns that the US-China trade war may be escalating, said Director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh.
Deputy Prime Minister Vuong Dinh Hue has asked the State Bank of Vietnam to actively and proactively direct monetary policy; closely combine with fiscal and macro-policies to control inflation; and prevent double inflation caused by higher foreign exchange rates and global fuel prices.
Thailand does not intervene with foreign exchange rates to gain competitiveness in trade, the local central bank’s chief was quoted by Asian Nikkei Review as saying.
The State Bank of Vietnam (SBV) on January 7 announced the central rate for the Vietnam dong and the US dollar at 21,919 VND per USD, an increase of 12 VND compared to January 6.
The US FED’s decision to raise interest rates by 0.25 percentage points on early December 17 has not prompted the central bank to change its policy on stabilising foreign exchange rates
Vietnam's foreign exchange rates fluctuated greatly in the third quarter, influenced by global currency volatility resulting in a negative impact on earnings of many listed companies.
The National Financial Supervisory Commission (NFSC) has proposed that a close watch be kept on China's moves in its socio-economic policies in order to react in an appropriate manner.
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