HANOI (Reuters) – Vietnam’s central bank is willing to sell U.S. dollars to the market to keep the exchange rate stable, Governor Nguyen Thi Hong said. Monday (NASDAQ:).
“The foreign exchange market has been volatile after the Fed’s interest rate cuts,” Hong told parliament in Hanoi, adding that market management is a challenging task.
Hong said the central bank will prioritize stability and inflation control, but will take measures to support the government’s goal of boosting the pace of economic growth.
“We are ramping up preferential loan packages for projects to develop housing for low-income people and for the aquatic industry,” Hong said.
Economic growth has largely depended on strong credit growth, but Hong said the total number of outstanding loans is “already high”, equivalent to 120% of GDP.
“It is risky to continue to rely on easing measures,” Hong said.
She said there is a need to encourage companies to raise money through the corporate bond and equity markets.
