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SBV holds conference on money market operations
The State Bank of Vietnam (SBV) held a conference on money market operations in Hanoi on February 18 with the aim of reviewing the implementation of money market operations in 2008 and charting out the directives in 2009. Deputy Governor Nguyen Dong Tien, Mr. Pham Ngoc Dinh, Director of the Capital Department of the State Treasury, and representatives from SBV departments and credit institutions headquartered in Hanoi attended the Conference.
Addressing the attendants, Deputy Governor Nguyen Dong Tien emphasized that money market operations has played an important role in ensuring the liquidity of the economy, and directly affected money supply and demand and interest rates in the market, thereby, helping the SBV manage monetary policy effectively. Of all capital allocation channels of the SBV to credit institutions, he added, open market operations (OMOs) is an effective and important channel which has increasingly become a key instrument of monetary management of the SBV.
Additionally, he asserted that the SBV would continue to conduct OMOs effectively and flexibly in line with the market demand in order to ensure the liquidity of credit institutions and the safety of the whole banking sector, hence contributing to implementing the tasks of the banking sector in 2009. The OMOs Management Board, he said, should consider to use the formulas of volume bidding and proper interest rates for appropriate terms, while improving the effectiveness of the inter-bank market. In addition, he stated that the SBV, in 2009, should continue to improve the regulations and procedures of money market operations, and at the same time coordinate with the Securities Custody Center to facilitate credit institutions in depositing their valuable papers.
SBV
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