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Foreign exchange reserves tripled over the past 5 years

28/01/2021

The monetary and foreign exchange markets have basically stable, State foreign exchange reserves increased to a record high, 3 times higher than the end of 2015. The dollarization gradually decreased, confidence in the Vietnamese Dong increasingly strengthened.

According to Governor Nguyen Thi Hong, in the past 5 years, despite complicated and unpredictable changes in the world economy and the outbreak of Covid 19, the State Bank of Vietnam has always been steadfast in the target of controlling inflation, stabilizing the macro-economy, supporting economic growth, ensuring operational safety of the banking system; closely followed market developments, proactively, prudently and flexibly applied appropriate measures and tools and have achieved many important results.

The State Bank has managed and contributed to control the average inflation below 4% in accordance with the target set by the National Assembly; the monetary and foreign exchange markets were basically stable, the State foreign exchange reserves increased to a record high, tripling compared to the end of 2015; The dollarization gradually decreased, capital resources in foreign currency and gold are gradually converted into money, serving socio-economic development.

Restructuring the system of credit institutions associated with bad debt handling has been implemented effectively step by step. The issue of ownership, cross-investment has been paid attention to and dealt with, the situation of large shareholders/groups of shareholders, bank manipulation and domination has been well controlled. The solutions to handle bad debts have been implemented synchronously according to Resolution 42 of the National Assembly.

Following these achievements, in the 2021 - 2025 period, the State Bank is determined to overcome all difficulties and challenges in order to lead and direct the system, with one of the focuses is to continue to firmly control inflation, maintain macroeconomic stability, improve the quality of planning and administration of monetary policy, and closely coordinate with other macroeconomic policies to respond flexibly, increase the resilience of the economy to the fluctuations of the world economy and currency, increase the independence and autonomy of the economy in the process of international economic integration.

At the same time, continue to take measures to remove difficulties for businesses and people, to support the economy to recover from the Covid-19 pandemic; focusing capital on production and business, especially priority areas; strictly control credit for potentially risky areas; to encourage the development of credit products to meet the legitimate needs of the people, contributing to limiting "black credit"; pay attention to the development of "green credit", "green banking", financial inclusion, creating jobs and ensuring social security, etc.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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