Vietnam forex reserves reach almost US$79 billion
Vietnam forex reserves reach almost US$79 billion
The State Bank of Vietnam (SBV) bought US$20 billion in 2019, increasing the country’s foreign exchange reserves to nearly US$79 billion, stated the central bank’s governor at a teleconference between the Government and local authorities on December 30.
That means the central bank spent nearly VND500 trillion on purchases of foreign currencies this year but still managed to keep inflation under control, reported VietnamPlus.
The nation’s core inflation, which excludes the prices of fresh food, energy and State-controlled healthcare and education services, remained low, fluctuating between 1.4% and below 2%.
The figures showed that SBV’s policies on foreign exchange rates had been executed properly and thereby enabled the central bank to mobilize a large sum of foreign currencies, remarked SBV Governor Le Minh Hung.
Foreign investment, remittance inflows and the transfer of foreign currencies among organizations and local residents have helped raise Vietnam’s foreign reserves, he added.
According to the head of the SBV, these activities demonstrated investors’ trust in the central bank’s monetary policy management and the local economy.
As for SBV’s regulations on the exchange rate, the bank this year has teamed up with ministries and agencies to remove obstacles for major trade partners.
Besides this, the State Bank has closely monitored the quality and volume of credit, with this year’s credit growth expected to rise by 13.5%.
The country’s banking system distributed VND8.1 quadrillion in credit to the economy, focusing on priority sectors such agriculture and rural development, small- and medium-sized enterprises and supporting industries.
The head of the SBV at the event also requested further tight cooperation with ministries and agencies to keep inflation under control and stabilize the monetary market and exchange rate in 2020.
