At a group meeting of the National Assembly on socio-economic affairs on May 22, PM Phuc said the exchange rate has been also stable and inflation has kept under control. Experts attributed the stability to factors such as the State Bank of Vietnam (SBV)’s flexible central rate management mechanism, which ensured that the domestic foreign exchange market was less affected by global factors. PM Nguyen Xuan Phuc was at a group meeting of the National Assembly on May 22. Photo chinhphu.vn In addition to this, the domestic supply-demand relationship with the dollar was relatively stable, thanks to foreign currency supply from exports, foreign investment, official development assistance, tourism and remittances. The SBV affirmed it would continuously try to build up the country’s foreign reserves this year to cushion external shocks, besides supporting efforts to stabilize the forex market. Fitch Ratings recently also forecast that Vietnam’s foreign … [Read more...] about Vietnam’s foreign reserves hit 64 billion USD
Vietnam foreign exchange control
Vietnam’s foreign reserves hit US$63 billion as of April
Vietnam’s foreign exchange reserves grew to a record high of almost US$63 billion as of the end of April, a senior Government official has stated. Vietnam purchased an additional US$32 billion over the past two years Chairman of the Government Office Mai Tien Dung informed the media that Vietnam purchased an additional US$32 billion over the past two years. He said that large reserves will provide more room for the State Bank of Vietnam to implement its monetary policy, especially in helping to maintain stability in exchange rates. In 2017, the exchange rate between the US dollar and the Vietnamese dong increased by just 1.2 percent, lower than the 2 pct target set by the government. According to the National Financial Supervisory Commission, the USD/VND rate continued to remain stable in the first quarter of 2018 and was supported by a strong supply of foreign currency. The exchange rate stood at VND22,463 per US dollar as of March 29, up 0.21 pct against the end of … [Read more...] about Vietnam’s foreign reserves hit US$63 billion as of April
Vietnam’s foreign exchange reserves at record level
Vietnam’s foreign exchange reserves have hit a new record, the State Bank of Vietnam (SBV) told the regular government meeting on July 3. SBV Governor Le Minh Hung said that foreign exchange reserves continued to increase in the first half of this year, reaching approximately $42 billion and up from the $41 billion at the end of 2016. The higher reserves are the result of trade going into deficit while exchange rates remain stable. The SBV has devalued the Vietnam dong against the US dollar three times this year, in January, April, and June. Stability remains despite the US Federal Reserve raising interest rates. Mr. Hung added that foreign currency liquidity was good in the first half, meeting supply and demand. It is possible the US Fed will increase interest rates again this year, he said. The SBV will actively monitor domestic and international market movements, taking measures to control … [Read more...] about Vietnam’s foreign exchange reserves at record level
Vietnam’s Prime Minister speaks out over Trump’s protectionism policies
Says the country should not allow key sectors to fall into foreign hands. Vietnamese Prime Minister Nguyen Xuan Phuc has spoken out about new trade policies adopted by U.S. President Donald Trump's administration, saying they will have a huge impact on Vietnam’s export-driven economy. At a Monday press briefing, Phuc said that Trump’s protectionism would affect Vietnam’s exports and foreign investment, and is likely to increase inflation and foreign exchange rates. In order to maintain growth and control inflation, Vietnam will need to look for strong and specific solutions, the report said. He said the country should try and raise private contributions to GDP from the current 32 percent to 35 percent, and boost the mining industry. Phuc also said Vietnam must not allow key economic sectors to fall into foreign hands. Trump took office in January and quickly withdrew from the Trans Pacific Partnership, which involved 11 other members, including Australia, … [Read more...] about Vietnam’s Prime Minister speaks out over Trump’s protectionism policies
Some banks in Vietnam enter new rate race
Some commercial banks have entered a new interest rate hike race to lure medium- and long-term deposits, pushing the rate to a record high of more than 9 per cent per year. VietA Bank has also listed a high rate of 8.2 per cent per year for certificates of deposit with tenure of just six to 18 months. The rate at Sacombank is also at 8.2 per cent per year; however, it is applicable for certificates of deposit with tenure of 5-7 years. The rate is much higher than the average deposit interest rates offered by other commercial banks. Currently, State-owned commercial banks offer a rate of 6.5-6.8 per cent per year for long-term deposits, while it is 7-7.5 per cent at large-sized joint stock commercial banks and 8-8.2 per cent at small-sized banks. Analysts attribute the hike to factors such as the need for medium- and long-term funds to grow lending this year. Many experts anticipated the scenario and warned there would be rising demand for long- and medium-term funding after they … [Read more...] about Some banks in Vietnam enter new rate race