Mr. Pham Thanh Ha, Director General of the Monetary Policy Department of the State Bank of Vietnam (SBV), has granted an interview to the correspondents about the SBV management of the forex market and the exchange rate in the coming time. Below is the full text of the interview.
Question (Q): Could you please make a general assessment of the forex market after the SBV announced the selling exchange rate at 23,050 VND to the USD on July 3, 2018 to intervene the market?
Answer (A): After the SBV announced the intervening selling exchange rate at 23,050 VND to the USD, the exchange rate in the forex market has been relatively stable at 23,040-23,050 VND/USD. That the SBV has fulfilled all the demands of purchasing foreign currencies from the credit institutions with negative forex status to supplement the foreign currency supply to the market, together with other measures and the monetary policy instruments have helped stabilize the exchange rate and the market. The legitimate demands for foreign currencies have been met promptly and fully.
Q: Then why did the SBV once more announce the selling exchange rate at 23,273 VND to the USD?
A: That the SBV was ready to intervene by setting the exchange rate at 23,050 VND to the USD has stabilized the exchange rate and the forex market as mentioned above. In fact, when there is a temporary shortage of foreign currencies and a pressure from psychological factor and expectations, the SBV’s intervention helped supplement foreign currencies to the market and improve the credit institutions’ capacity of supplying foreign currencies to their customers. Therefore, that the SBV announced the selling exchange rate at 23,273 VND to the USD was to let the exchange rate develop in line with the domestic and international situations, and ensure the readiness to support the market at a reasonable level.
Q: What are the SBV’s management orientations in the coming time?
A: The SBV is still persistent to the objectives of managing the monetary policy as set right from the beginning of the year as: contributing to control inflation and stabilize the macro-economy. The SBV will continue to conduct synchronously the measures and other monetary policies to implement those objectives, focusing on continuing to manage the exchange rate in a flexible and proper manner in accordance with the domestic and international developments, in collaboration with other instruments and being ready to sell foreign currencies to intervene in the market if necessary, with the aims of stabilizing the forex market, contributing to the macro-economic stability.
Q: Thank you!
Le Hang