This news was heard at a press conference for the first quarter of 2024 in Hanoi held by the State Bank of Vietnam (SBV).
At the press conference, Deputy Governor of the State Bank Dao Minh Tu said that thanks to the synchronous implementation of many solutions, credit increased in March 2024 after a decrease in the two prior months. As of March 29, credit in economics increased by 1.34 percent compared to the end of 2023.
Talking about exchange rate management, Mr. Dao Minh Tu revealed the State Bank of Vietnam has controlled the exchange rate flexibly in combination with the issuance of Vietnamese-dong bills to reduce excess Vietnamese dong liquidity; thereby, it has helped reduce short-term pressure on the exchange rate. The State Bank is ready to intervene in exchange rates if there are fluctuations, even right now, said Mr. Dao Minh Tu.
Deputy Governor of the State Bank Dao Minh Tu also disclosed that the State Bank of Vietnam will continue to maintain regulated interest rates - a tool in monetary policy that allows a central bank to control the money supply in an economy - unchanged after four downward adjustments in 2023 in the context that interest rates in the world are still high.
The state bank decided to keep OMOs unchanged with the aim of creating favorable conditions for credit institutions to access capital from the State Bank at a low cost. At the same time, the state bank encourages credit institutions to reduce costs to reduce lending interest rates aiming to support the economy.
Deputy Governor of the State Bank Dao Minh Tu said that according to interest rate reports of commercial banks, by March 31, 2024, the average deposit interest rate of new transactions is at 3.02 percent a year, a year-on-year decrease of 0.5 percent and the average lending interest rate of new transactions is at 6.5 percent yearly, down 0.6 percent compared to the end of 2023.
As for the gold market, from the beginning of 2024 until now, according to Deputy Governor Dao Minh Tu, international gold prices fluctuate in an upward trend mainly due to fluctuations in the world's political and economic situation. This causes the average price of SJC gold bars to fluctuate according to international gold prices. Currently, the State Bank is implementing measures to support the gold market, selling gold bars to increase supply to the market through bidding.
Regarding the future orientation, the Deputy Governor of the State Bank said that SBV will continue to closely follow market developments and economic situations at home and abroad to have the flexible and synchronous operation of monetary policy tools and solutions for the currency market to control inflation, contribute to the stabilization of the macroeconomy, the currency and foreign exchange markets.
In addition, the state bank will continue to review and complete a number of legal documents related to credit-granting activities in accordance with the Law on Credit Institutions 2024.
