On May 16, 2024, Prime Minister Pham Minh Chinh chaired a meeting on the monetary policy and the fiscal policy to continue implementing the goal of maintaining the stability of the macroeconomy, controlling the inflation, promoting growth, and ensuring the major balances of the economy, improving the material and spiritual life of the people.
An overview of the meeting
The SBV participants attending the meeting included Governor Nguyen Thi Hong and the other members of the SBV’s Board of Management, together with representatives of several entities under the SBV.
At the meeting, the representatives of the SBV, the Ministry of Finance, the Government Office delivered reports on the implementation of the monetary and the fiscal policy during the past months. According to SBV Deputy Governor Pham Thanh Ha, the SBV has implemented synchronous solutions, including: Continuing to improve the legal regulations to facilitate the operations of the credit institutions, increasing the customers’ access to the banks’ credit, supporting the customers in difficulties; Operating the monetary policy in a proactive, flexible and effective manner, in support of the economic recovery, but still paying attention to inflation risks; Coordinating synchronously, harmoniously and closely with the fiscal policy and other macro policies to promote the economic growth and to maintain the stability of the macroeconomy, as well as to control the inflation; Always standing ready to intervene in the foreign currency market when necessary.
Representatives of the line Ministries, agencies attending the meeting
Deputy Governor Pham Thanh Ha also reported on the credit growth management, the interest rate management, the exchange rate management and the foreign currency market; the coordination between the monetary policy and the fiscal policy; the macroeconomic operations to achieve the established goals for 2024s...
On the gold market management, Deputy Governor Pham Thanh Ha informed that, over the past time, implementing the directions of the Government, the SBV has implemented intervention measures to stabilize the gold market through gold bullion auctions to increase the supply. The SBV has publicly announced the information related to the auctions and the results on the SBV’s web portal. Since April 19, 2024, the SBV has organized 7 auctions to sell the SJC-branded gold bullions to increase the supply in the market, of which 4 auctions were successful, with a total bidded volume of 27,200 taels (equivalent to about 1.02 tons).
Deputy Governor Pham Thanh Ha speaks at the meeting
In the context of complicated and unpredictable developments around the world, impacting significantly the domestic situation, in the coming time, according to Prime Minister Pham Minh Chinh, it is necessary to stay brave and remain a calm perspective, non too optimistic neither too pessimistic about the economic outlook, and to initiate early intervention solutions to further maintain the macroeconomic stability, control the inflation, and promote the economic growth.
The Prime Minister requested the line agencies to continue to operate the monetary policy in a proactive, flexible, timely and effective manner; coordinating synchronously and harmoniously with the fiscal policy with appropriate and targeted expansion, as well as in coordination with other policies.
On the monetary policy, it is necessary to ensure the harmony and the appropriateness between the exchange rate and the interest rates; using effectively the market tools, including prompt money supply and withdrawal operations, with due attention given to the objective of not letting the exchange rate affect the macroeconomy, controlling the inflation, and maintaining a relative stability of the exchange rate; implementing strong solutions to facilitate customers’ access to the banks’ credit; cutting down the costs, minimizing the administrative procedures, and especially promoting the application of the digital transformation in the banking operations, reducing the lending interest rates by 1-2% to support production and business operations; promoting the credit growth by 5-6% in the second quarter of 2024.
On the gold market, the Prime Minister emphasized the tasks and solutions to narrow the gap between the domestic gold bullion and the international gold prices, including strong and effective communication, strengthening the inspection and supervision activities, and strictly handling with any violations. The PM also requested the commercial banks, Saigon Jewelry Company Ltd. (SJC) to coordinate with the SBV on this issue; fully implementing and complying with the regulations on e-invoices in gold trading activities; by June 15, 2024, any business establishment that fails to issue e-invoices connected to the tax authority in gold trading must have their license revoked; continuing to carefully review, evaluate and summarize the implementation of Decree No. 24/2012/ND-CP of the Government on the management of the gold trading operations.
The Prime Minister further requested the line agencies to cut down the administrative procedures, and the Government Office will formulate and submit to the Prime Minister for issuance a Directive on minimizing the administrative procedures, especially through the digital transformation, in the banking and finance operations.
HY