NFSC affirms stability of monetary and financial markets

Thursday, Dec 04, 2014 18:18

The domestic monetary and financial markets remain stable, affirms the National Financial Supervisory Commission. — Photo

HA NOI (Biz Hub) ─ Viet Nam's monetary and financial markets remain stable, the National Financial Supervisory Commission (NFSC) reported in its economic update for the first 11 months of 2014.

Infonet online quoted the NFSC as saying banking system liquidity remained healthy, with the loan-deposit ratio for the entire system last November 30 at 78 per cent, the lowest in recent years, and as a result, deposit interest rates have declined.

Interbank interest rates tended to increase at a range of 3.18 per cent to six per cent last November 28, but the commission described this trend as a mere "seasonal factor".

Overall lending grew significantly, expanding by 7.85 per cent as of October 24. Credit growth is likely to be stronger between now and year-end with support policies of the State Bank of Viet Nam, which forecast lending growth at 12 to 14 per cent for 2014.

Exchange rates also fluctuated upwards because of psychological and seasonal factors, with the official rate increasing by 134 dong (0.63 per cent) and the parallel market rate rising by 155 dong (0.73 per cent) last November 24 compared with end-October 2014.

According to the NFSC, the psychological factor has resulted in large margins between domestic and world gold prices, as well as the appreciation of the US dollar in the international market. An increase in importers' payment demands at year-end likewise pushed up the demand for foreign currencies.

But a trade surplus in the past 11 months of nearly US$2 billion will help maintain the exchange rates' stability, the commission said. The inter-bank exchange rate reached VND21,246 per dollar on December 4. — VNS

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