Illustrative photo (Photo: www.vietstock.vn) Hanoi (VNA) - The State Bank of Vietnam(SBV) has reaffirmed its determination to pursue a proactive and flexiblemonetary policy in 2017.
Theaim is to achieve the goals of high economic growth and price stability in thecontext of volatile monetary policies of major countries, according to astatement made during an online conference between the government and localauthorities at the end of December 2016.
Theworld economy is forecast to remain unpredictable next year, with a number ofcountries likely to exploit currency devaluations to support their trade.
SBVGovernor Le Minh Hung suggested the government stick to its objectives ofcontrolling inflation and stabilising the macro-economy to ensuresustainability for the whole economy.
However,the head of the monetary authority said macroeconomic policy management shouldlimit the use of monetary policy instruments as a substitute for fiscal andbudget measures.
“Ialso discussed this issue with the minister of finance to assign clear tasks inoperation to ensure consistency in macroeconomic management,” Governor Hungsaid.
Hesaid the domestic forex market and the exchange rate had been essentiallystable this year, which was a good result compared with other volatilecurrencies that fluctuated under the pressure of the Brexit process and the USpresidential election.
“Bythe end of 2016, the Vietnamese dong has devalued 1.1-1.2 percent and foreigncurrency liquidity is stable,” the governor said and attributed the currencystability to proactive policy management.
Hesaid the central bank had reduced its intervention in the forex market this yearand the demand for foreign currency had increased towards the year-end, but theforex market remained steadfast.
Asfor lending, he estimated credit expansion to reach 18.5 percent this year.
Admittingoutlook for interest rates in 2017 will be under pressure due to high growthtargets, the governor pledged to ensure stable basic interest rates and tostrive to reduce lending rates for the medium and long-term as directed by thegovernment. – VNA
Theaim is to achieve the goals of high economic growth and price stability in thecontext of volatile monetary policies of major countries, according to astatement made during an online conference between the government and localauthorities at the end of December 2016.
Theworld economy is forecast to remain unpredictable next year, with a number ofcountries likely to exploit currency devaluations to support their trade.
SBVGovernor Le Minh Hung suggested the government stick to its objectives ofcontrolling inflation and stabilising the macro-economy to ensuresustainability for the whole economy.
However,the head of the monetary authority said macroeconomic policy management shouldlimit the use of monetary policy instruments as a substitute for fiscal andbudget measures.
“Ialso discussed this issue with the minister of finance to assign clear tasks inoperation to ensure consistency in macroeconomic management,” Governor Hungsaid.
Hesaid the domestic forex market and the exchange rate had been essentiallystable this year, which was a good result compared with other volatilecurrencies that fluctuated under the pressure of the Brexit process and the USpresidential election.
“Bythe end of 2016, the Vietnamese dong has devalued 1.1-1.2 percent and foreigncurrency liquidity is stable,” the governor said and attributed the currencystability to proactive policy management.
Hesaid the central bank had reduced its intervention in the forex market this yearand the demand for foreign currency had increased towards the year-end, but theforex market remained steadfast.
Asfor lending, he estimated credit expansion to reach 18.5 percent this year.
Admittingoutlook for interest rates in 2017 will be under pressure due to high growthtargets, the governor pledged to ensure stable basic interest rates and tostrive to reduce lending rates for the medium and long-term as directed by thegovernment. – VNA
VNA
