HANOI (Reuters) – Vietnam’s central financial institution is able to promote U.S. {dollars} to the market to maintain the alternate fee secure, Governor Nguyen Thi Hong mentioned on Monday (NASDAQ:).
“The exchange rate market has been volatile after the Fed’s rate cuts,” Hong advised the parliament in Hanoi, including that market administration is a difficult process.
Hong mentioned the central financial institution will prioritise stability and inflation management, however can have measures to assist the federal government’s purpose of lifting the tempo of financial progress.
“We are ramping up packages of preferential loans for projects to develop homes for low-income earners and for the aquatic industry,” Hong mentioned.
Financial progress has largely been reliant on robust credit score progress, however Hong mentioned whole excellent loans are “already high”, equal to 120% of GDP.
“It’s risky to continue relying on easing measures,” Hong mentioned.
She mentioned there’s a must encourage corporations to boost funds by way of the company bond and inventory markets.
