Chinese yuan’s devaluation has immediately affected the exchange rate, the foreign currency market and the stock market, with both advantages and challenges expected for the domestic economy in the coming time.
On August 11, the State Bank’s response by increasing the trading band of Vietnamese dong/US dollar (VND/USD) from +/- 1 percent to +/-2 percent was considered a timely and suitable move, taking into account factors impacting the financial and monetary markets, trade and investment and ensuring the overall interests of the economy.
The forex market saw signs of stabilizing and the inter-bank USD/VND exchange rate decreased below the ceiling on August 14.
At the meeting, PM Dung asked the ministries and agencies to continue monitoring the domestic, regional and global situations while assessing impacts on each field, specially the forex, stock and gold markets, import-export, investment, payment balance public debt and economic growth.
The PM required relevant ministries and sectors must strengthen coordination to take appropriate counter measures to global monetary changes in order to minimise adverse impacts on the Vietnamese economy.
He also said they must steer monetary and exchange rate policies in an active and flexible fashion and in line with the market, contributing to ensure the macro economy and the stability of the domestic currency.
At the meeting
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The forex market saw signs of stabilizing and the inter-bank USD/VND exchange rate decreased below the ceiling on August 14.
At the meeting, PM Dung asked the ministries and agencies to continue monitoring the domestic, regional and global situations while assessing impacts on each field, specially the forex, stock and gold markets, import-export, investment, payment balance public debt and economic growth.
The PM required relevant ministries and sectors must strengthen coordination to take appropriate counter measures to global monetary changes in order to minimise adverse impacts on the Vietnamese economy.
He also said they must steer monetary and exchange rate policies in an active and flexible fashion and in line with the market, contributing to ensure the macro economy and the stability of the domestic currency.
