Stable exchange rate a success of monetary policy

Thien Thanh Sanitaryware joint company



Stable exchange rate a success of monetary policy

The State Bank of Vietnam (SBV) has achieved an important target of maintaining a stable foreign exchange over the past two year while expanding the foreign currency reserves by more than two times compared to the end of 2011.

At an October 30 seminar held by the SBV on policy management between 2011-2013, experts said the results are an outstanding success of the SBV’s management of monetary policy.

According to the General Statistic Office of Vietnam , the exchange rate in the 2011-2012 period saw little change. The stable rate was maintained until the end of the first quarter of this year. The forex market began to see some fluctuations in the second quarter, but the increase was kept within the range of 2-3 percent as set at the beginning of the year.

Director of the SBV’s Foreign Exchange Management Department Nguyen Quang Huy attributed the success to a tight yet flexible monetary policy in pursuit of the goal of controlling inflation, stabilising the macro economy and maintaining a reasonable economic growth.

The stable exchange rate and an orderly foreign exchange market have also contributed to reducing dolarisation in the country as well as encouraging a trend to hold VND.

In the last months of this year, the central bank said it would continue to closely monitor the monetary market’s activities and take necessary measures to maintain the stability of the forex market, helping stabilise the macro economy, and increase confidence in the domestic currency.-VNA