Bank of Vietnam announced massive purchase of U.S. dollars
2022.12.27 01:02
Bank of Vietnam announced massive purchase of U.S. dollars
Budrigannews.com – Vietnam’s national bank said on Tuesday it was putting forth attempts to support unfamiliar trade saves by purchasing up more U.S. dollars, after it had to sell a lot of greenback prior in the year to help its dong cash.
In addition, the State Bank of Vietnam (SBV) stated that it would “stabilize the monetary and foreign exchange markets to ensure the safety of the banking system” in order to maintain inflation at 4.5 percent next year.
The SBV released a statement stating that lending by Vietnamese banks increased 12.87 percent as of December 21 compared to the end of last year.
Dao Minh Tu, a deputy SBV governor, stated at a news conference on Tuesday that the banking system’s non-performing loans were under control and that inflation should be below 4% in 2022.
Without providing any specifics, Tu stated that the SBV was purchasing dollars to increase its foreign exchange reserves.
To support the dong, which has fallen to record lows in recent months as a result of capital outflows as the U.S. Federal Reserve repeatedly raises interest rates to tame inflation, the central bank was forced to sell a large amount of U.S. dollars to the market earlier this year.
Market examiners said the SBV had sold about $20 billion worth.
Vietnam doesn’t give standard exposure on the size of its unfamiliar trade holds. Late in 2021, the SBV put the figure at $100 billion.
The national bank early this month raised its 14% cap on layaway development for the financial framework this year by 1.5 to 2.0 rate focuses, following a credit smash in the property area and its monetary business sectors.
More China revised to increase GDP growth in 2021
With a projected 8% increase in gross domestic product this year, Vietnam’s economy is expected to grow at one of the fastest rates in Asia thanks to robust exports and robust manufacturing. Strong credit expansion is another important factor in its economic expansion.
