Forex reserves reach highest level to date
The State Bank of Vietnam (SBV) obtained a large amount of foreign currencies in the first half of 2019, pushing foreign exchange reserves recorded in the period to the highest level to date.
Governor of the State Bank of Vietnam Le Minh Hung
The information was released by SBV Governor Le Minh Hung ata regular Government teleconference with 63 provinces and cities nationwide inHanoi on July 4.
Hung said fluctuations in the global market in the first sixmonth were unpredictable but proactive and flexible measures had been taken tokeep the domestic foreign exchange market stable.
During the period, the reference exchange rate was adjustedby 1 percent, while the rate listed at commercial banks and inter-bank ratewere adjusted by 0.3 – 0.4 percent.
He stated the central bank has all necessary tools toeffectively control the rate.
He noted since the beginning of the year, the fourcommercial banks – Vietcombank, Vietinbank, BIDV, and Agribank – havethoroughly followed the Government and SBV’s direction in reducing interestrate for prioritised sectors.
The work has helped businesses lower costs and the bankingsystem keep a stable interest rate, he added.
Meanwhile, credit growth during January-June reached 7.33percent, roughly equaling that of the same period last year. The creditstructure shifted positively, aiding the growth of industry,processing-manufacturing, and export.
Regarding credit for animal husbandry, the Governor said outstandingbalance stood at 51 trillion VND (2.19 billion USD), of which 1.7 trillion VNDwere resulted from damage caused by the African swine fever disease.-VNA
The foreign exchange market has heated up when the daily reference exchange rate set by the State Bank of Vietnam continuously climbed to new record levels and the VND/USD rates listed at commercial banks also surged.
The forex “fever” in the first week of May has sparked concerns over its continuity in the upcoming time.
The State Bank of Vietnam is ready to sell foreign currency to stabilize the forex market in the wake of the sharp strengthening of the greenback against the Vietnamese dong recently.