Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam's central bank to keep proactive, flexible monetary policy

Vietnam's central bank to keep proactive, flexible monetary policy

Content image - Phnom Penh Post
A bank clerk counts bills at a BAOVIET Bank branch. VIETNAM NEWS AGENCY/VIET NAM NEWS

Vietnam's central bank to keep proactive, flexible monetary policy

The State Bank of Vietnam (SBV) will keep a proactive and flexible monetary policy based on market developments and forecasts for the macro-economy, SBV deputy governor Dao Minh Tu told a meeting on April 22.

This monetary policy is meant to control this year’s inflation within the targeted ceiling of about four per cent, support macroeconomic stabilisation, assist economic recovery, ensure liquidity, maintain stability in the monetary and forex markets, and create conditions to reduce capital expenses for people, businesses, and the economy as a whole, the official said.

The SBV will maintain a close watch on domestic and foreign macro-economic and monetary changes, foreign exchange rate developments, as well as foreign currency demand and supply to set appropriate exchange rates, he noted, adding that it will carry out measures and policy tools to stabilise exchange rates and the forex market to help ensure macro-economic stability.

Credit provision will be boosted, especially for priority fields to match economic restructuring and help fuel growth and stabilise the macroeconomy.

Tu also stressed the need to tighten control over credit for high-risk areas like real estate, transport projects in build-operate-transfer (BOT) and build-transfer (BT) formats, and securities while at the same time adopting solutions to tackle difficulties facing those hit hardest by the Covid-19 pandemic and natural disasters.

The central bank will order credit institutions to facilitate people and enterprises’ access to credit to help minimise loan-sharking, he said.

Pham Thanh Ha, director of the SBV’s Monetary Policy Department, reported a credit growth rate of 3.34 per cent as of April 16, compared to the end of 2020, pointing out that the credit growth has begun stagnating as credit has increased by just 0.41 per cent in half a month though the rise was 0.76 per cent in January, eased slightly to 0.66 per cent in February due to the Covid-19 resurgence, and surged by 2.93 per cent last month.

The SBV said that since the beginning of the year, it has flexibly and synchronously used monetary policy tools to ensure liquidity for the banking system, stabilise the monetary market, and help reduce input cost for credit organisations, easing the pressure on deposit and lending interest rates.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42