According to the report of the Ministry of Planning and Investment , the socio-economic situation in February 2024 continued to recover positively with many important results, better than the same period in 2023 in most areas, creating momentum for growth and development throughout the year. The macro economy continued to be stable, inflation was controlled, and major balances were ensured.
 |
Consumer price index (CPI) in February increased by 3.98% over the same period, the average increase in the first 2 months was 3.67%; core inflation increased by 2.84%; interest rates continued to decrease; the State Bank implemented all credit growth targets and focused on promoting credit from the beginning of the year; the safety of the banking system was ensured.
Continue to operate monetary policy proactively, flexibly, promptly, effectively, and in close, synchronous, harmonious, and coordinated coordination with fiscal policy and other macroeconomic policies to contribute to supporting economic growth, stabilizing the macro economy, controlling inflation, and stabilizing the monetary and foreign exchange markets and the banking system.
In particular, flexible open market operations are conducted to support liquidity for credit institutions, contributing to stabilizing the monetary market and achieving monetary policy goals. Before and after the Lunar New Year, the available capital of credit institutions ensures the mandatory reserve requirement and has surplus. From the beginning of February until now, we have continued to conduct term purchase offers of valuable papers daily through open market operations with appropriate volume and term, while proactively increasing the volume of term purchase offers of valuable papers to signal readiness to support system liquidity and stabilize the monetary market during the Lunar New Year. Currently, system liquidity is abundant, the monetary market is stable, operating smoothly, and interbank interest rates remain low.
Credit management in harmony with macroeconomic developments to contribute to supporting economic growth, controlling inflation, stabilizing the macro economy, and ensuring the safe operations of credit institutions. Managing credit growth for the entire system in 2024 at about 15% and flexibly adjusting in accordance with developments and actual situations. Accordingly, in order to create favorable conditions for credit institutions to provide credit capital for the economy, all credit growth targets of 15% will be assigned and the principles of credit growth assignment in 2024 will be announced so that credit institutions can proactively implement credit growth.
Despite the active and synchronous implementation of many solutions, credit growth in early 2024 was quite low compared to recent years. In the coming time, the State Bank of Vietnam will continue to closely monitor developments and the actual situation to proactively manage credit growth to contribute to controlling inflation, stabilizing the macro-economy, supporting economic growth and ensuring system safety.
Continue to maintain operating interest rates, creating conditions for credit institutions to access capital sources at low costs; continue to encourage credit institutions to reduce costs to reduce lending interest rates to support the economy; require credit institutions to announce average lending interest rates, the difference between average deposit and lending interest rates on the websites of credit institutions.
Regarding exchange rate management, from the beginning of 2024 until now, the exchange rate has moved flexibly in both directions, in accordance with market conditions: (i) The exchange rate is under pressure to increase, one of the reasons is the relatively large demand for foreign currency at the beginning of the year to import raw materials; (ii) In early February 2024, the exchange rate tended to decrease with favorable foreign currency supply before Tet due to seasonal factors and increased again after Tet due to pressure from the USD. Basically, the balance of foreign currency supply and demand remains relatively stable, market liquidity is smooth, legitimate foreign currency needs are fully met; the exchange rate moves in accordance with the trend of international currencies against the USD. The SBV continues to closely monitor the market situation to operate the exchange rate flexibly and appropriately, ready to intervene in the market when necessary to stabilize the foreign currency market, contributing to controlling inflation and stabilizing the macro economy.
Non-cash payment activities continue to achieve positive results. The inter-bank electronic payment system, the financial switching and electronic clearing system, and the ATM system generally operate stably, safely, and smoothly, serving well the payment needs of people before, during and after Tet. The ATM situation during Tet this year continues to not be overloaded like previous years, however, the applications of some banks encountered errors and overloaded during the Lunar New Year at some times. This confirms that people's need to withdraw cash is decreasing and being replaced by the habit of using non-cash payments (especially money transfers via mobile phone applications).
Direct credit institutions to step up the handling and recovery of bad debts; improve credit quality, prevent and limit the emergence of new bad debts. By the end of December 2023, the on-balance sheet bad debt ratio was 4.55%. In 2023, the entire system handled about VND 266.87 trillion of bad debts.
| Reporting at the regular Government meeting in February 2024, the Minister of Planning and Investment said that the macro economy is stable, inflation is under control, major balances are ensured; the socio-economic situation in the first two months of the year continued to achieve many positive results, with better changes compared to the same period in 2023 in most areas, creating momentum for growth and development throughout the year. |
Source link
Comment (0)