28.9 C
Ho Chi Minh City
Saturday, July 19, 2025

spot_img

TAG

monetary policy

Monetary policy trends

The recent appreciation of the Vietnam dong currency against the U.S. dollar will give the State Bank of Vietnam (SBV) more room to adjust local-currency interest rates to fuel credit growth and stimulates the economy. However, there are still many challenges for monetary policy in the final months of 2024. Lower pressure on monetary policy management The foreign exchange rate has been volatile since the beginning of 2024. The U.S. dollar edged up from VND24,345 per dollar early this year to VND25,450 in April, or a 4.5% increase. It then remained steadily high until July before a sharp decline in August. The main reason is the cooling of the DXY index after a series of bleak monthly job reports and the gradual easing of inflation in the U.S. Lower consumer demand has led to clearer expectations that the U.S. Federal Reserve (Fed) would lower interest rates. The interbank exchange rate in Vietnam has dropped below VND25,000 per dollar for the first time since early April this year. What needs to be assessed about monetary policy in late 2024 is whether the dollar decline against the dong could stay steady over a sufficiently long period. If this is the case, combined […]
To read more, please click here.

Will policy rates stay put?

Although deposit interest rates continue rising, predictions about the central bank’s policy rates have shifted significantly. What has led to these new expectations for...

Challenges for growth

Both supply and demand in the economy are showing more positive signals than before, suggesting that economic growth will continue in the coming quarters....

The current dollar deposit rate policy matters

Recently, there have been recommendations that the 0% interest rate policy for U.S. dollar deposits be lifted given the current situation. However, this policy...

Monetary policy challenges

Were interest rates recently hiked to either “harmonize” with foreign exchange rate management objectives, or indicate a shift towards ending the monetary loosening policy...

Differences in money supply

The credit growth target which the State Bank of Vietnam (SBV) has set for this year is 15%. There has emerged concern over the...

Expecting new FDI influx

Experts expect a continued flow of FDI into the country, particularly in the semiconductor industry, and high-tech and value-added products. A roller-coaster ride After serving as...

Uncertainty still prevails

High forex pressure was felt in Vietnam in 2022 due to interest rate hikes by major central banks in the world, and the year...

Still in bad shape

The real estate sector has continued to face challenges even after multiple rounds of interest rate cuts. It has struggled to absorb the available...

Latest news

spot_img