Vietnam needs to focus on monetary policy after the US report

HANOI (Reuters) – Vietnam is paying more attention to its monetary policy, not only as an internal matter, but also as a concern for the country’s major trading partners, a central bank deputy governor said on Sunday after the US Treasury’s six-month currency. report.

A U.S. Treasury report said on Friday that Vietnam had exceeded its trade surplus, current account and foreign exchange intervention thresholds, but was “pleased with Vietnam’s progress so far” in dealing with exchange rate problems.

Speaking at an economic forum, Pham Thanh Ha, the deputy governor of the central bank, said that the bank had taken the issues seriously and that its monetary policy had been effectively implemented.

“We need to pay more attention to the implementation of our monetary policy, which has an impact not only on our home economy, but also on our large trading partners,” Ha said.

“Vietnam will continue to implement monetary policy in a prudent and flexible manner.”

Ha also said that the central bank has bought about $ 25 billion in the last two years to help the dong enter the banking system and boost the economy.

He said that if necessary, the bank should implement measures that would affect liquidity and market interest rates, raising the risk of inflation.

(This story has been corrected to remove the foreign word “the” in the first paragraph, add the missing word “bank” in paragraph 6)