Measures taken to stabilise foreign exchange market: SBV Governor

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong on May 29 said that the central bank is closely following market moves and implementing measures to stabilse exchange rates and foreign exchange market as the Government has directed.

Speaking at the National Assembly (NA)’s ongoing 7th sitting on May 29, Hong said that the recovery of domestic production and exports in the coming time will push foreign currency supply and demand. It’s forecast that exchange rates will cool down by the end of this year and the SBV will continue to closely monitor market developments so that businesses can feel secure about the Government's management, Hong said.

Regarding low credit growth, the Governor said that this trend is not only in Vietnam but also across the world as countries continue tightening their monetary policy.

The Government has strongly directed ministries and agencies, including the SBV, to implement solutions to support and promote credit growth, she noted.

There are many reasons for the low credit growth, including those regarding exports and the domestic market, Hong said.

Sectors that usually have huge demand for loans like real estate market are facing difficulties, particularly relating to the legal framework. The Government has asked for drastic solutions and established a working group to guide localities in solving the difficulties, the governor said.

She added that the Government has recently urged speeding up public investment, particularly in infrastructure, which will boost the cash flow for businesses and then activate the credit of the banking system.

In addition, the SBV has repeatedly called for more support for small-and-medium-sized enterprises as they account for 95% of the total businesses, as a way to boost credit.

Also at the event, Minister of Planning and Investment Nguyen Chi Dung said Vietnam has achieved positive results in implementing the socio-economic development tasks in 2023 and the first five months of 2024 despite of difficulties and challenges.

As challenges remain in the coming time, the Government is focusing on solutions such as supporting domestic businesses; further attracting foreign investment; promoting investment, consumption and exports; speeding up digital transformation, green transition, circular economy, emerging industries, and important industries such as semiconductor chips and renewable energy; as well as accelerating disbursement of public investment capital.

The minister also noted the importance of institutional reforms and stronger decentralisation to localities./.