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Foreign currency composition within allowable margin
The country’s foreign currency composition remains stable and only fluctuates within the margin of 17-25 percent of the total capital, affirmed the Governor of the State Bank of Vietnam (SBV), Nguyen Van Giau.
The SBV Governor made the statement while talking with the press on foreign exchange management and loan subsidy on the sidelines of the signing ceremony of a credit agreement for the modernisation of the financial system in Hanoi on April 21.
He stressed the importance of trade balance, adding that after 23 years of renewal Vietnam still faces trade deficit. However, Giau quoted the Prime Minister as saying in Hongkong on April 20 that the country recorded a trade surplus of 1.65 billion USD for the first time in the first quarter of 2009.
“The exchange rate will be flexibly adjusted based on the demand-supply relations,” Giau said, stressing that domestic production and consumption stimulation is a pressing issue.
According to the SBV leader, the speculation of foreign currencies in the market over recent days can be attributed to the impacts of the global financial crisis and economic recession.
The SBV is collaborating with the Ministry of Public Security and local market control forces and People’s Committees to deal with the issue, he said.
Giau went on to assert that the Foreign Exchange Ordinance prohibits the posting of prices in foreign currencies in the market. Authorised agencies must strictly punish related violations, he noted.
The SBV will issue stricter regulations on foreign exchange management, he added.
The Governor reaffirmed the Prime Minister’s sound decision on loan subsidy policy. The first consumption stimulation package focusing on short-term loans has helped reduce commodities’ prices, Giau said.
“With the second package focusing on medium and long-term loans, we plans to disburse around 70 trillion VND from now until the end of the year,” he said.
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