Illustrative image (Source: dangcongsan.vn)Hanoi (VNA)- The State Bank of Vietnam (SBV) on December 2 announced its key orientationof monetary policy management and banking operations in 2017.
Accordingly, the SBVsaid that it would pursue a proactive and flexible monetary policy in the yearto stabilise the rates of interest and foreign exchange.
The monetary policy willalso be in close conjunction with fiscal and other macro-economic policies in amove to control inflation and support economic growth at a reasonable level.
After buying more than40 billion USD of foreign reserves to date this year - a record high in recentyears, the SBV affirmed that it would continuously try to increase thecountry’s foreign reserves besides supporting efforts to stabilise the forexmarket in 2017.
Measures will be alsotaken to stabilise the monetary market and ensure the liquidity of the bankingsystem, according to the central bank.
As for interest rate,the central bank is targeting a stable rate as in 2016.
Though the central bankhas yet to release the credit growth target for 2017, it has revealed that itwill take measures to control it to ensure the lending is safe and effective.
Lending willcontinuously focus on the Government’s five prioritised sectors of agriculture,exports, spare-parts industries, small- and medium-sized enterprises, andhi-tech firms, while limiting the capital to risky industries, the SBV stated.
As lending in foreigncurrencies will continue in 2017, as per a recently issued circular, the SBVsaid that it would strictly control such kind of lending to ensure thecountry’s de-dollarisation policy.
Assessing the monetarypolicy management in 2016, the SBV said that in the context of pressure on highdemands of Government bonds and lending as well as inflation in 2016, themanaging of interest rates was positive and in accordance with macro-developmentof the past 11 months. Liquidity of the banking system was good while theoperation of the inter-bank market was also smooth.
The SBV reported thatrising money supply in the past 11 months didn’t put pressure on inflation. Asof November 22, money supply rose 14.92 percent year-on-year while capitalmobilisation surged 15.28 percent.
As of November 28,credit growth rose 14.57 percent as against December last year, of whichlending in foreign currencies increased 3.49 percent – suitable with the Government’sde-dollarisation policy.
According to the SBV,the credit growth to date has been reasonable and positive with a focus onproduction and business, which has contributed to the restructuring of theagricultural sector as well as the development of fishery and spare-partsindustries as well as small- and medium-sized firms, export and high-techfirms.
The central bank alsosaid that the forex market in 2016 was basically stable, while adding that thesharp strengthening of the US dollar against the dong last month was mainly dueto market sentiment, which tracked global market developments. This change wasnormal, because the central bank had been regulating the exchange rate with amore flexible and market-based methodology this year, setting the referencerate every day and letting commercial banks trade the dollar at /-3 percent oneither side of the rate, the SBV said.
It affirmed that nosudden rise in the demand and supply for the dollar had been reported in thelocal forex market over the period. Liquidity in the banking system remainsstrong, helping banks meet dollar demand of institutions and individuals in atimely manner. – VNA
Accordingly, the SBVsaid that it would pursue a proactive and flexible monetary policy in the yearto stabilise the rates of interest and foreign exchange.
The monetary policy willalso be in close conjunction with fiscal and other macro-economic policies in amove to control inflation and support economic growth at a reasonable level.
After buying more than40 billion USD of foreign reserves to date this year - a record high in recentyears, the SBV affirmed that it would continuously try to increase thecountry’s foreign reserves besides supporting efforts to stabilise the forexmarket in 2017.
Measures will be alsotaken to stabilise the monetary market and ensure the liquidity of the bankingsystem, according to the central bank.
As for interest rate,the central bank is targeting a stable rate as in 2016.
Though the central bankhas yet to release the credit growth target for 2017, it has revealed that itwill take measures to control it to ensure the lending is safe and effective.
Lending willcontinuously focus on the Government’s five prioritised sectors of agriculture,exports, spare-parts industries, small- and medium-sized enterprises, andhi-tech firms, while limiting the capital to risky industries, the SBV stated.
As lending in foreigncurrencies will continue in 2017, as per a recently issued circular, the SBVsaid that it would strictly control such kind of lending to ensure thecountry’s de-dollarisation policy.
Assessing the monetarypolicy management in 2016, the SBV said that in the context of pressure on highdemands of Government bonds and lending as well as inflation in 2016, themanaging of interest rates was positive and in accordance with macro-developmentof the past 11 months. Liquidity of the banking system was good while theoperation of the inter-bank market was also smooth.
The SBV reported thatrising money supply in the past 11 months didn’t put pressure on inflation. Asof November 22, money supply rose 14.92 percent year-on-year while capitalmobilisation surged 15.28 percent.
As of November 28,credit growth rose 14.57 percent as against December last year, of whichlending in foreign currencies increased 3.49 percent – suitable with the Government’sde-dollarisation policy.
According to the SBV,the credit growth to date has been reasonable and positive with a focus onproduction and business, which has contributed to the restructuring of theagricultural sector as well as the development of fishery and spare-partsindustries as well as small- and medium-sized firms, export and high-techfirms.
The central bank alsosaid that the forex market in 2016 was basically stable, while adding that thesharp strengthening of the US dollar against the dong last month was mainly dueto market sentiment, which tracked global market developments. This change wasnormal, because the central bank had been regulating the exchange rate with amore flexible and market-based methodology this year, setting the referencerate every day and letting commercial banks trade the dollar at /-3 percent oneither side of the rate, the SBV said.
It affirmed that nosudden rise in the demand and supply for the dollar had been reported in thelocal forex market over the period. Liquidity in the banking system remainsstrong, helping banks meet dollar demand of institutions and individuals in atimely manner. – VNA
VNA
