Illustrative image (Source: LienVietPostBank) Hanoi (VNA) – The US-China trade war and the fall in the Chinese Yuan post big impacts for the world economy, including Vietnam. Some experts have said Vietnam should employ flexible exchange rate policies in response. A recent report from the Vietnam Institute for Economic and Policy Research (VERP) under the Hanoi National University noted that the US and China are two trade partners of special importance of Vietnam. The US is Vietnam’s largest export market where one fifth of total export revenue comes from, while a quarter of imported goods to Vietnam are from China, according to the report. Currently, the VND price depends on the fluctuation of the USD. When the Chinese Yuan’s price drops, the trade balance of Vietnam will be seriously affected as cheaper Chinese goods will flood the domestic market. Nguyen Duc Thanh, VERP Director said Vietnam should pursue flexible policies on exchange rate, which means the … [Read more...] about Vietnam advised to apply flexible policies on exchange rate
Stable exchange rate
Stable interest and exchange rates forecast for 2018
(VEN) - Macroeconomic developments and the impact of the international financial market signal a low probability of lower interest rates in 2018. At the same time, stable exchange rates and a high trade surplus are forecast for the year. Difficulties for lowering interest rates A recent government resolution requires the State Bank of Vietnam (SBV) to strive for lowered interest rates. However, according to economists, this goal can only be achieved with the support of macroeconomic developments and the international financial market. Dr. Tran Du Lich, a member of the Prime Minister’s Economic Advisory Group, said the Vietnamese economy would undergo positive changes in 2018. This assessment is based on an estimated GDP growth of more than 7.1 percent in the first quarter of the year. Regarding interest rate policy, in order to force interest rates down and expand lending, rediscount must be increased, lending activities intensified and inflation controlled. “To some … [Read more...] about Stable interest and exchange rates forecast for 2018
Stable foreign exchange rate expected in 2018
Some commercial banks appreciated the US dollar after last week’s interest rate hike by the US Federal Reserve (Fed).– Photo vov.vn Some commercial banks appreciated the US dollar after last week’s interest rate hike by the US Federal Reserve (Fed). Experts, however, have said the exchange rate between the US dollar and Vietnamese dong is likely to remain relatively stable throughout the year. In its first policy meeting under new Fed chief Jerome Powell on Wednesday, Fed lifted its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.50 per cent to 1.75 per cent. After this rise, Fed is predicted to have at least two more hikes for 2018, highlighting its growing confidence that tax cuts and government spending will boost the economy and inflation and spur more aggressive future controls. After the Fed’s decision, domestic commercial banks also increased their US$/VND exchange rate. On Friday Vietcombank and BIDV listed the dollar … [Read more...] about Stable foreign exchange rate expected in 2018
Reference exchange rate up 18 VND at week’s beginning
The State Bank of Vietnam set the daily reference exchange rate at 22,444 VND/USD on February 5 (Source: VNA)Hanoi (VNA) – The StateBank of Vietnam set the daily reference exchange rate at 22,444 VND/USD on thefirst day of the week (February 5), up 18 VND from the last day of last week(February 2). With the current trading band of+/- 3 percent, the ceiling rate applied to major commercial banks during theday is 23,117 VND/USD, and the floor rate 21,773 VND/USD. The rates listed at majorcommercial banks continue to stay stable. Vietcombank and BIDV maintainedtheir rates unchanged from last week, at 22,675 VND/USD (buying) and 22,745VND/USD (selling). The rates listed by Vietinbank went up by 1VND to 22,675 VND/USD (buying) and 22,745 VND/USD (selling).-VNA … [Read more...] about Reference exchange rate up 18 VND at week’s beginning
VN Central Bank works to maintain stable interest rates
The State Bank of Vietnam (SBV) will work to maintain interest rate stability, enabling firms to access credit for their production and business, SBV Governor Le Minh Hung has said. Currently, common lending rates for priority fields range from 6 percent to 7 percent per year for short term, and 9-10 percent for medium and long terms. For ordinary loans, the rates were 6.8-9 percent for short term and 9.3-11 percent for medium and long terms. For good clients, short-term loan interest rates are 4-5 percent per annum. Chairman of the Vietnam Construction Pottery Association Dinh Quang Huy said the Government and banks have adopted a number of preferential credit policies to help enterprises develop. As a result, many companies have stabilised operations, addressed capital shortages and avoided dependence on black credit, he said. Numerous banks have supported businesses, following Government directions and the SBV request to save expenses and reduce interest rates. For example, … [Read more...] about VN Central Bank works to maintain stable interest rates