Vietnam central bank ready to sell U.S. dlrs to keep exchange rate stable

HANOI (Reuters) – Vietnam’s central bank is ready to sell U.S. dollars to the market to keep the exchange rate stable, Governor Nguyen Thi Hong said on Monday (NASDAQ:MNDY).

“The exchange rate market has been volatile after the Fed’s rate cuts,” Hong told the parliament in Hanoi, adding that market management is a challenging task.

Hong said the central bank will prioritise stability and inflation control, but will have measures to support the government’s goal of lifting the pace of economic growth.

“We are ramping up packages of preferential loans for projects to develop homes for low-income earners and for the aquatic industry,” Hong said.

Economic growth has largely been reliant on strong credit growth, but Hong said total outstanding loans are “already high”, equivalent to 120% of GDP.

“It’s risky to continue relying on easing measures,” Hong said.

She said there is a need to encourage firms to raise funds via the corporate bond and stock markets.