Governor of the State Bank of Vietnam Nguyen Van Giau told reporters in Hanoi that "Monetary markets will be monitored and relaxed based on the basis of flexibility and effectiveness to prevent a deficit the International Balance of Payments. However, there must be many standby methods in case of global financial market upheavals."
He also said that the banking sector's credit growth this year would be set at 3.2 to 3.5 times over gross domestic product (GDP) growth. Vietnam's GDP growth this year is forecast at 6.5%.
Interest rates will be gradually cut based on the balance between banks' mobilised capital and outstanding loans
, Giau said, adding foreign exchange rates would also be governed by market demand and supply of US dollars. (SGT)
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