Deputy Governor of the State Bank: Stabilize currency value, create confidence for investors

(NLDO) – The banking industry is always proactive and flexible in managing monetary policy, protecting the national currency...

This is a statement from the Permanent Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, on the journey of the banking sector over the past 74 years, on the occasion of the 80th anniversary of National Day on September 2nd. Since its establishment in 1951, along with the ups and downs of the nation's history, the State Bank of Vietnam has affirmed its role as a solid pillar of the economy .

Banks are the primary source of capital for the economy.

According to Mr. Dao Minh Tu, in each period, the banking sector has always been proactive and flexible in managing monetary policy, protecting the national currency, contributing to controlling inflation, stabilizing the macroeconomy, and promoting sustainable growth.

Deputy Governor of the State Bank of Vietnam, Dao Minh Tu

The State Bank of Vietnam has gradually improved and reformed its monetary policy tools, moving closer to modern central banking operations, in line with international practices and the development trends of the country's economy.

In a developing economy, where the banking system is the primary channel for supplying capital, monetary policy has played a crucial role as one of the government 's key macroeconomic policies in promoting economic growth and achieving rapid and sustainable economic development.

Governor of the State Bank of Vietnam, Nguyen Thi Hong, along with leaders of commercial banks, at the "80 Years of Independence - Freedom - Happiness" National Achievements Exhibition in Hanoi on the occasion of the September 2nd holiday.

"Throughout its history, the State Bank of Vietnam has consistently and steadfastly pursued the goal of controlling inflation and stabilizing the macroeconomy, considering this the top priority in the process of managing monetary policy. Macroeconomic stability and controlled inflation are prerequisites for the country's economic development, consolidating a solid foundation and maintaining the confidence of investors, the business community, and the people in the business environment. This helps attract foreign investment and optimally mobilize and allocate resources," Mr. Dao Minh Tu emphasized.

Creating stability in currency value

In particular, over the past 10 years and before, the State Bank of Vietnam has successfully contributed to controlling inflation in line with the targets set by the National Assembly and the Government, and anchoring inflation expectations at a stable level – below 4.5%. This is one of the biggest and most important political goals, a fundamental foundation for economic stability, currency stability, and confidence among domestic and foreign investors.

The "Vietnam Banking - 74 Years of Trust and Pride" section at the National Achievements Exhibition commemorates the journey of the banking industry's formation, development, innovation, and international integration.

The money market is operating stably, and lending interest rates are trending downwards to support businesses, borrowers, and directly contribute to economic growth. The basic exchange rate is stable, the foreign exchange market is functioning smoothly, and legitimate foreign currency needs are being fully met.

"Not only did the banking sector ensure financial support for the resistance war, but it also contributed to building the foundation of monetary independence and economic and financial sovereignty, contributing to the great victory of Spring 1975, reunifying the country, unifying the currency, and unifying the people's hearts," affirmed the Permanent Deputy Governor of the State Bank of Vietnam.

Looking towards the vision for 2045 – a momentous milestone commemorating 100 years of national independence – the State Bank of Vietnam has set a strategic goal of continuing to steadfastly adhere to the Party's leadership. At the same time, it aims to promote proactiveness, creativity, and high responsibility, coordinating closely with ministries, sectors, and localities to best achieve the country's overall development goals.

Source: https://nld.com.vn/pho-thong-doc-ngan-hang-nha-nuoc-on-dinh-gia-tri-dong-tien-tao-niem-tin-cho-nha-dau-tu-19625090216070604.htm