Home Business Why Vietnam’s central bank bought about $25 billion worth of U.S. dollars over the past two years?

Why Vietnam’s central bank bought about $25 billion worth of U.S. dollars over the past two years?

by Asia Insider

Vietnam Says It Bought $25 Billion of Dollars Over Past 2 Years, according to a deputy governor.

The move helped inject the Vietnamese dong into the banking system and boost the economy, Pham Thanh Ha told an economic forum in Hanoi Sunday.

The U.S. Treasury last week announced that Vietnam met all the criteria again of being currency manipulator though it was “satisfied” with the progress made by the country to date on addressing exchange-rate issues.

Nguyen Thanh Phong, deputy head of the central economic committee, told the forum that economic damage from the pandemic over the past two years could reach 500 trillion dong. The government must try to boost public investment, domestic consumption and export oriented businesses to help economic recovery, he said.

Bloomberg’s Nguyen Dieu Tu Uyen reported.

The country will pay more attention to its monetary policy as it is not only a domestic matter but the a concern for the country’s big trade partners, a central bank deputy governor said on Sunday, days after the U.S. Treasury’s semi-annual currency report.

The U.S. Treasury report on Friday said that Vietnam exceeded its trade surplus, current account and foreign exchange intervention thresholds, but was “satisfied with progress made by Vietnam to date” on addressing exchange-rate issues, according to Reuters.

“We have to pay more attention to our monetary policy implementation as it does not have impact on our domestic economy but our big trade partners as well,” Ha said.

“Vietnam will keep implementing monetary policy in a cautious and flexible manner.”

Source: Vietnam Insider

You may also like