SBV Governor Le Minh Hung speaks at the event (Photo: VNA) Hanoi (VNA) – Vietnam’s foreign exchange reserves havereached approximately 79 billion USD so far this year, with a quarter of itbought by the State Bank of Vietnam (SBV), according to SBV Governor Le MinhHung.
At a teleconference between the Government and localities held on December 30,it was said that although 20 billion USD was bought into the economy, theinflation was not critically impacted.
The SBV has worked to keep the rate at a low level, with core inflation rateranging from 1.4 to under 2 percent, Hung said, stressing it is important toensure stable macro-economy as well as sound operation of local enterprises.
He affirmed the SBV’s rational foreign exchange policy helps the nation havesufficient resources to cope with external economic shocks. The reserves camefrom foreign direct and indirect investment, remittances, and currencies heldby organisations and residents.
In the past year, the central bank also focused on controlling quality ofcredit structure. The credit growth is projected to expand 13.5-13.7 percent in2019, and the banking system supplied some 8.1 quadrillion VND (350.2 billion USD)to the economy.
The credit structure was occupied mainly by those lentto the prioritised sectors of industry (accounting for 20 percent of totaloutstanding debt), rural development and agriculture (25 percent), and small- andmedium-sized enterprises (19 percent).
The central bank enjoyed success in its interest rate policy, Hung said, addingit adjusted interest rates and cut lending rates to meet increasing demand forcapital of local firms and organisations.
In 2019, credit institutions set a ceiling rate for fivepriority sectors of agriculture and rural development, export, small- andmedium-sized enterprises, supporting industries and high-tech production at 6percent so as to back economic growth.
As for 2020, Hung said the Government should direct competent ministries,branches and localities to coordinate with the SBV to reach the inflation ratetarget and stabilise the foreign exchange market.
The SBV will work with associations, sectors and localities to facilitatecapital access for businesses, thus boosting socio-economic development in2020, he added./.
At a teleconference between the Government and localities held on December 30,it was said that although 20 billion USD was bought into the economy, theinflation was not critically impacted.
The SBV has worked to keep the rate at a low level, with core inflation rateranging from 1.4 to under 2 percent, Hung said, stressing it is important toensure stable macro-economy as well as sound operation of local enterprises.
He affirmed the SBV’s rational foreign exchange policy helps the nation havesufficient resources to cope with external economic shocks. The reserves camefrom foreign direct and indirect investment, remittances, and currencies heldby organisations and residents.
In the past year, the central bank also focused on controlling quality ofcredit structure. The credit growth is projected to expand 13.5-13.7 percent in2019, and the banking system supplied some 8.1 quadrillion VND (350.2 billion USD)to the economy.
The credit structure was occupied mainly by those lentto the prioritised sectors of industry (accounting for 20 percent of totaloutstanding debt), rural development and agriculture (25 percent), and small- andmedium-sized enterprises (19 percent).
The central bank enjoyed success in its interest rate policy, Hung said, addingit adjusted interest rates and cut lending rates to meet increasing demand forcapital of local firms and organisations.
In 2019, credit institutions set a ceiling rate for fivepriority sectors of agriculture and rural development, export, small- andmedium-sized enterprises, supporting industries and high-tech production at 6percent so as to back economic growth.
As for 2020, Hung said the Government should direct competent ministries,branches and localities to coordinate with the SBV to reach the inflation ratetarget and stabilise the foreign exchange market.
The SBV will work with associations, sectors and localities to facilitatecapital access for businesses, thus boosting socio-economic development in2020, he added./.
VNA
