SBV to establish new State Foreign Exchange Reserve Management Department
SBV to establish new State Foreign Exchange Reserve Management Department
The State Bank of Vietnam (SBV) intends to establish the State Foreign Exchange Reserve Management Department due to the rise in foreign currency reserves.
According to the central bank, there are now two entities directly responsible for the administration of the state's foreign currency reserves: the Department of Foreign Exchange Management and the main operation centre.
Both of these entities have handled a variety of different responsibilities and activities, in addition to maintaining the state's foreign currency reserves. The Foreign Exchange Management Department performs the state management of foreign exchange and gold, while the main operation centre carries out interbank market services.
However, the collaboration of the two entities was only appropriate for a certain period when foreign exchange reserves were limited.
The SBV estimated that the amount of the state's foreign currency reserve in 2021 exceeded $109.9 billion, equivalent to a 10-fold increase over 2010.
“As a result of the significant volume of assets that must be handled, the task at the main operation centre has been overburdened, placing further strain on public officials,” the SBV noted.
In order to address this urgency, the SBV would create the new State Foreign Exchange Reserve Management Department as soon as possible.
