The Hanoitimes - The foreign exchange reserves reached the all-time high of US$ 53 billion, an increase of US$ 8 billion compared to the last December.
This above statement was provided by the State Bank of Vietnam (SBV)’s governor Le Minh Hung at the meeting on missions of banking sector in 2018 in January 9, for which this positive trend has been growing since the end of 2017 as of present. Seen as a significant factor to build up Vietnam’s credibility in the global financial market, the leader of the SBV convinced this news will attract more foreign investors coming to Vietnam.
With this record, SBV has injected nearly VND 295 trillion to the economy to purchase US$ 13 billion in throughout 2017. With high liquidity in the domestic foreign exchange market, foreign currency loans are timely provided to local organizations and individuals.
SBV has injected nearly VND 295 trillion to the economy to purchase US$ 13 billion in throughout 2017.
Vietnam is also having a healthy credit growth rate at 18.17%, for which the governor requested banks to continue pushing credit on priority sectors. He also referred to Bloomberg’s view that the Vietnam dong is one of the most stable currency in Asian region.
In touched with the monetary policy in 2017, the SBV has flexibly implemented monetary instruments to stabilize the financial market and take inflation rate under control, enabling credit institutions to reduce interest rate. Under this conditions, lenders are able to growth their loan books, thus, partly contributed to the GDP reaching a 10-year high of 6.81%.
Specifically, the SBV has actively reduced the central rate of 0.25% per year and ceiling rate of 0.5% per year for short term loans in priority sectors, which was followed by the reduction of lending rates at 0.5% per year for short term loans from credit institutions. In particular, some credit institutions have also reduced the lending rate for mid to long term loan to nearly 8% per year.
In the coming time, the banking sector will continue its effort to reduce lending rates, with an aim to support enterprises and economic growth.