The State Bank of Vietnam (SBV) should closely combine the monetary policy with the fiscal policy to continue effectively implementing measures to curb inflation, stabilise the macro economy and ensure social welfares.
PM Dung at the meeting marking the 60 th founding anniversary of the Vietnamese banking sector (Photo: VNA)
Prime Minister Nguyen Tan Dung made the request while attending a meeting marking the 60 th founding anniversary of the Vietnamese banking sector (May 6, 1951-2011) and presenting the Ho Chi Minh Order to the sector in Hanoi on April 27.
The central bank should exercise proactive and flexible monetary tools and policies and continue keeping a close watch on the monetary market so as to timely deal with unreasonable issues on interest rates, ensuring liquidity and gradually forming a stable and suitable inter-bank interest rate in parallel with ensuring the safety and liquidity for credit organisations, Dung said.
“The SBV needs to handle the monetary market and foreign exchange rate in an active and flexible manner in order to encourage exports, improve the international payment balance, increase foreign currency reserves, prevent foreign currency speculations and reduce the dollarisation of the economy,” he stressed.
The Government leader praised the banking sector’s efforts and achievements over the past 60 years, making practical contributions to the national development.
In the renewal process, the Vietnamese banking sector has been able to renovate monetary policies and mechanisms, making them suitable to the country’s situation as well as in line with international rules, actively contributing to developing a multi-sectoral economy and curbing inflation, the PM said.
He noted that the SBV’s performance of its function of State management of monetary and banking operations as well as the functions of a central bank has been improving, adding that the system of credit organisations and banks for policies has continuously developed with a stable legal environment.
The PM also praised the well-trained banking staff, who have mastered modern technologies for fulfilling their tasks over the past 60 years.