Vietnam’s central bank said on Monday it will continue to pursue a “flexible monetary policy” for the rest of this year to keep inflation under control, maintain macro stability and support an economic recovery, Reuters reported.
In an emailed statement, the State Bank of Vietnam also said total lending by banks rose 5.1% as of June 15 from the end of 2020.
Previously, on April 24th, 2021, SBV Deputy Governor Dao Minh Tu said, SBV will keep a proactive and flexible monetary policy based on market developments and forecasts for the macro-economy, Vietnam News Agency reported.
This monetary policy is meant to control this year’s inflation within the targeted ceiling of about 4 per cent, support macroeconomic stabilization, 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 stabilize 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 stabilize 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 minimize loan-sharking, he said.
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, stabilize the monetary market, and help reduce input cost for credit organizations, easing the pressure on deposit and lending interest rates, according to Vietnam News Agency.
- State Bank pledges to operate proactive and flexible exchange rate
- State Bank of Vietnam denies creating unfair trade advantage via forex policies
- Vietnam should harmonise monetary and fiscal policies to support economic recovery
- Vietnam, U.S. reach agreement over U.S.’s designation of Vietnam as currency manipulator
- SSI Research: The monetary easing policy will continue to be maintained
- Banking industry directed to support economic recovery
- Monetary policy: “Smooth carpet” for the economic development
- Vietnam credit growth hits 3.26% in Jan-Jun
- Can the State Bank restrict buying USD, VND will increase in price?