Seven-month foreign exchange reserves increase

The foreign currency market positively performed in the first seven months of this year

Through open market operations with reasonable refinancing and foreign currency purchases, the SBV has successfully ensured the liquidity of the banking system, while interbank interest rates have declined.

Flexible measures have helped deposit interest rates maintain its stability, contributing to reducing pressure on lending rates of commercial banks in a context where inflation tends to increase rapidly. The SBV has instructed credit institutions to implement measures to maintain stable interest rates, save costs and improve business efficiency.

Deposit interest rates after increasing by 0.2-0.3 percent a year in the first three months of the year have been adjusted to fall. In particular, interest rates have declined by 0.5 percent a year in short-term loans, while standing at a maximum of 10 percent a year in medium and long-term loans. In addition, commercial banks have offered many credit packages with preferential interest rates.

Seven-month monetary policy led to positive movement in the foreign currency market while remaining exchange rate on the interbank market stable at around VND22,300 per dollar. The SBV has purchased a large amount of foreign currencies to increase foreign exchange reserves.

The SBV leaders announced a flexible monetary policy for the last months of the year, all in close coordination with the fiscal policy to keep inflation under control. The SBV will follow macroeconomic developments and banking operations with reasonable refinancing to support the liquidity of the banking system, while directing commercial banks to carry out measures in order to maintain stable interest rates, reduce costs and improve business efficiency.

The SBV will also control credit growth to ensure safety and efficiency., with a main focus on agriculture, high technology, exports, support industries and small and medium-sized enterprises, while restricting credit in some high-risk sectors.

Duy Minh