Vietnam prime minister Asks for Tight Control on Gold & Forex Market at Year End

Prime minister issued Directive No.2051/CT-TTg on November 16, asking the State Bank of Vietnam (SBV) to tightly control the local foreign exchange and gold market in late 2011 and early 2012, the state-run online newspaper Chinhphu.vn reported.

Specifically, the prime minister requested the central bank to proactively take bold measures to control the exchange rates and the gold prices; to cooperate with related ministries and government bodies to closely oversee and strictly handle illegal gold and foreign currency hoarding, trading and speculations.

The central bank was also asked to: 1) continue governing the monetary policies closely, efficiently and flexibly; 2) effectively use the interest rate and exchange rate tools to stabilise the local monetary market; 3) manage the money supply reasonably to ensure the liquidity of the entire banking sector and to meet capital demand for production; 4) maintain reasonable credit and M2 growth rates; 5) take measures to curb inflation, stabilise the macro-economy and boost production.

The SBV was also requested to closely monitor, inspect and oversee banks’ credit activities, especially in real estate and stock sectors; and curb bad debts to ensure the health of the whole banking system.

 

Category: Finance