The interest rate in foreign currency deposits and loans is now in tune with global developments, and the capital supply and demand in the Vietnamese market cannot increase strongly because the interest rate tends to be stable at low level thanks to safe and sound monetary policies.
Mr Nguyen Huu Nghia, Director of the Department of Monetary Forecast - Statistics under the State Bank of Vietnam (SBV), affirmed that the monetary market will continue to be stable in the last six months of 2010.
The interest rate in foreign currency deposits and loans is now in tune with global developments, and the capital supply and demand in the Vietnamese market cannot increase strongly because the interest rate tends to be stable at low level thanks to safe and sound monetary policies.
In fact, according to the collection and expenditure of foreign currencies of the economy through main items like the balance of international payments, the supply and demand of foreign currencies of the economy in the second quarter of 2010 and in the first six months of were still stable and positive.
Mr Nguyen Danh Trong, Deputy Director of the Monetary Policy Department under the State Bank of Vietnam (SBV), said: With administrative measures of the State Bank, the monetary market is expected to be volatised in the next six months of 2010.
To ensure the steadiness of the monetary market in the remaining months of the year, the State Bank and credit institutions must continue to take drastic and synchronous solutions in accordance to the Resolution No. 18/NQ-CP dated April 6, 2010, the Resolution No. 23/NQ-CP on dated June 7, 2010, the Resolution No. 26/NQ-CP on dated June 4, 2010 of the Government, and the direction of the Prime Minister stated in the Document No. 120/TB-VPCP dated May 17, 2010.
The State Bank must manage the money supply in line with the plan approved for 2010 by the Prime Minister through monetary instruments to ensure the credit growth of 20 -25 % in 2010.
At the same time, the State Bank will regulate the market interest rate by increasing the amount of money supplied, retaining prime rates, refinancing rates, rediscount rates and interest rates in open market operations and in foreign currency swaps, increasing the size of deals through open market operations at more reasonable interest rates and terms.
Implementing government-adopted measures, in the first six months of 2010, the State Bank of Vietnam actively, flexibly and prudently applied monetary policies and increased control over currency, inflation, interest rate and exchange rate toward macroeconomic balance targets to stabilise the currency market, ensure the safety of the payment system and support the liquidity of the economy to achieve the credit growth of 20 - 25 % as expected, bring down interest rates and stabilise exchange rates.
According to Mr Nguyen Danh Trong, the inflation may be kept at 8 to 8.5 % in 2010 thanks to monetary management solutions adopted by the State Bank of Vietnam (SBV).
The banking system may mobilise more capital than in the first months of the year because of improved macroeconomic stability, growing investor confidence and Vietnam’s economic recovery policies.
Exports will continue to be expanded in addition to the development of the domestic market to create a driving force for GDP growth. The domestic economy will continue to rebound strongly. The Ministry of Planning and Investment said the GDP growth was expected at 6.5-7 % in the third quarter of 2010 and 6.5 % in the whole year. (VNA)
Vietnamese
