PM chairs meeting on impacts of China's yuan devaluation

Minister Nguyen Tan Dung chaired a meeting with relevant ministries, sectors and agencies to look at the possible impacts of the Chinese yuan’s devaluation on the Vietnamese economy.

 

 

Officials present at the meeting agreed that China’s move has significantly affected the exchange rate, the foreign currency market and the stock market, with both advantages and challenges expected for the domestic economy in the time ahead.

 

The State Bank’s response by widening the trading band of the Vietnamese Dong/US Dollar (VND/US$) from +/- 1% to +/-2% on August 11 was considered a timely and necessary move, taking into account factors impacting the financial and monetary markets, trade and investment and ensuring the overall interests of the economy.

 

The forex market showed signs of stabilizing while the inter-bank US$/VND exchange rate dropped further on August 14.

 

The PM requested the ministries and agencies to continue keeping a close watch on the domestic, regional and global situations while assessing the impacts on each field, specifically the forex, stock and gold markets, import-export, investment, payment balance public debt and economic growth.

 

He said relevant ministries and sectors must enhance co-ordination to take appropriate counter measures to global monetary changes so as to minimise adverse impacts on the Vietnamese economy.

 

He also told them to steer monetary and exchange rate policies in an active and flexible manner and in line with the market, helping to ensure the macro economy and the stability of the domestic currency.

 

(Source: nhandan.org.vn)