SBV ready to intervene to stabilise foreign exchange rate: Deputy Governor

The State Bank of Vietnam (VNA) will manage the exchange rate flexibly, adjusting in line with general trends while still ensuring macro-economic stability and foreign currency balance, said its Permanent Deputy Governor Dao Minh Tu.

The exchange rate is rising strongly. (Photo: VietnamPlus)

The exchange rate is rising strongly. (Photo: VietnamPlus)

The State Bank of Vietnam (VNA) will manage the exchange rate flexibly, adjusting in line with general trends while still ensuring macro-economic stability and foreign currency balance, said its Permanent Deputy Governor Dao Minh Tu.

At major private commercial banks, the US dollar price has continued to rise sharply, with some quoting the selling price at 25,221 VND/USD, surpassing the selling price of the US dollar at the SBV's Reserve Management Department and hitting the ceiling price allowed for trading on the April 3 session.

sbv.jpg

Foreign exchange transaction at a bank (Photo: VietnamPlus)

Answering reporters’ question about the "hot" exchange rate at the regular Government’s press conference on April 3 afternoon, Tu said the US Federal Reserve (Fed) has not specified a specific time for loosening its monetary policy by lowering interest rates. This delay has had the opposite effect, impacting global currencies, including the Vietnamese dong.

Furthermore, Vietnam's interest rates have dropped strongly recently, creating a gap between the US dollar and Vietnamese dong interest rates in the interbank market, putting upward pressure on the US dollar.

In the first quarter of this year, the country’s imports saw strong growth, leading to increased demand for foreign currency for imports more than in previous periods. Several other policies may affect exchange rate policies.

However, he said with the SBV’s management, the exchange rate remains stable, ensuring a smooth foreign exchange market and a positive foreign exchange situation for commercial banks and the economy, meeting the foreign currency needs of businesses, importers and the economy. The depreciation rate of the Vietnamese dong against the US dollar was still lower compared to other countries, with a year-to-date depreciation of only 2.6% compared to 2.9% in 2023.

To address the immediate pressures, the SBV has flexibly managed the exchange rate to absorb external shocks and simultaneously issued Vietnamese dong bonds to reduce excess VND liquidity, alleviating short-term pressure on the exchange rate.

Expressing his optimism for the medium term, Tu held that the Fed is likely to initiate its monetary loosening policy in the second half of the year, potentially leading to a weakening dollar on a global scale.

sbv.jpg

SBV Permanent Deputy Governor Dao Minh Tu answers reporters’ queries at the government’s regular press conference (Photo: VietnamPlus)

SBV Permanent Deputy Governor Dao Minh Tu answers reporters’ queries at the government’s regular press conference (Photo: VietnamPlus)

In the medium term, with the Fed expected to begin the process of loosening monetary policy in the second half of this year, the pressure on the international market may gradually decrease, and the US dollar may cool down along with the Fed's interest rate reduction trajectory, Tu said.

The SBV will continue to monitor market developments closely and flexibly manage the exchange rate, ensuring its alignment with other monetary policy tools. It stands ready to intervene in the market when necessary to stabilise the foreign exchange market, contributing to inflation control and macro-economic stability.

In fact, the foreign exchange reserves of the SBV remain stable and sufficient to intervene when necessary, Tu stressed./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Imposing and raising special consumption tax contributing to change consumption behavior

Imposing and raising special consumption tax contributing to change consumption behavior

VCN - At the Workshop on Comments on Completing the Revised Law on Special Consumption Tax (SCT) organized by the Vietnam Confederation of Commerce and Industry (VCCI) on July 11, many experts and businesses contributed their opinions to clarify the importance and impact of the revised special consumption tax law, which emphasizes the addition of taxable areas or tax increases to change society's consumption behavior.
The local Finance sector is flexible and strict in managing budget revenues and expenditures

The local Finance sector is flexible and strict in managing budget revenues and expenditures

VCN - Although the forecast for the last 6 months of the year will still have many difficulties and challenges, the Finance sector in all localities expressed their determination to strive to achieve and exceed estimates, while strengthening the prevention of revenue loss and handling tax debt recovery, etc.
Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

VCN - The Finance industry excellently accomplishes financial and budget tasks in the first half of 2024, said by Minister of Finance Ho Duc Phoc at the Online conference to review performance of financial and budget tasks in the first half of 2024 and set out tasks for the second half of the year.

More News

Mobile Money users in Vietnam rise rapidly

Mobile Money users in Vietnam rise rapidly

The number of Mobile Money service users in Vietnam reached more than 8.8 million customers by the end of May, an increase of 3.3% over the same period last month.
Foreign service providers have paid VND4,039 billion of tax in the first half of 2024

Foreign service providers have paid VND4,039 billion of tax in the first half of 2024

VCN - In the first six months of 2024, there are 26 foreign service providers newly registered, declared and paid tax in Vietnam.
Continue to warn about forms of fraud against taxpayers

Continue to warn about forms of fraud against taxpayers

VCN - In response to the increasing prevalence of sophisticated scams targeting taxpayers, the General Department of Taxation (GDT) has issued directives to tax authorities nationwide to strengthen individual income tax management and provide warnings and preventive measures to help taxpayers remain vigilant and protect themselves from fraudulent activities.
Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

VCN - Banks and insurance businesses have different understandings of the regulations in the Law on Credit Institutions 2024.
Corporate bond issuance soars in comparison to 2023

Corporate bond issuance soars in comparison to 2023

VCN - According to the Ministry of Finance, from the beginning of the year to June 21, 2024, 41 enterprises have issued private corporate bonds with a total value of VND 110.2 trillion.
Tax debt recovery is estimated to achieve VND 45,468 billion

Tax debt recovery is estimated to achieve VND 45,468 billion

VCN - In the first half of 2024, tax authority at all level has issued 16,859 notifications on temporary exit suspension and recovered VND918.7 billion of tax debt from 1,482 taxpayers.
Public accounting standards publication contributes to spreading investment attraction

Public accounting standards publication contributes to spreading investment attraction

VCN - According to a World Bank (WB) expert, the publication of public accounting standards not only helps strengthen the sustainability of the financial system but also creates a ripple effect in attracting private sector and foreign investment.
Another six months for debt restructuring but need to manage bad debt risks

Another six months for debt restructuring but need to manage bad debt risks

VCN - The decision to continue extending the debt restructuring period, keeping the debt group unchanged for another six months, is expected to continue to contribute to solving difficulties for businesses, reduce debt repayment pressure, and add resources for production and business recovery.
Promote  information transparency to increase large-scale investors in  stock market

Promote information transparency to increase large-scale investors in stock market

VCN - Deputy Minister of Finance Nguyen Duc Chi talked with Customs News about the goal of upgrading Vietnam's stock market and solutions to achieve this goal by 2025.
Read More

Your care

Latest Most read
The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Theref
Imposing and raising special consumption tax contributing to change consumption behavior

Imposing and raising special consumption tax contributing to change consumption behavior

Many experts and businesses contributed their opinions to clarify the importance and impact of the revised special consumption tax law
The local Finance sector is flexible and strict in managing budget revenues and expenditures

The local Finance sector is flexible and strict in managing budget revenues and expenditures

VCN - Speaking at the Conference to summarize financial and budget work in the first 6 months of the year, implementing tasks in the last 6 months of 2024 on July 15, Mr. Nguyen Xuan Sang, Deputy Director of Hanoi Finance Department said, Hanoi's budget r
Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

VCN - Minister Ho Duc Phoc praised achievements in the first half of 2024 and affirmed that these are remarkable results, showing great efforts of all officials of the Finance industry, and the effective coordination of local governments.
Mobile Money users in Vietnam rise rapidly

Mobile Money users in Vietnam rise rapidly

The number of Mobile Money service users in Vietnam reached more than 8.8 million customers by the end of May, an increase of 3.3% over the same period last month.
Mobile Version