Topic: sbv

Circular No. 12/2022/TT-NHNN from the State Bank of Vietnam (SBV) on foreign exchange management in foreign borrowing and repayments by enterprises will take effect from November 15. Enterprises must publish monthly online reports on their website on foreign loans and repayments that are not guaranteed by the government.

The State Bank of Vietnam (SBV) has recently injected more than VND18.6 trillion ($779.22 million) into the market through open market operations (OMO) to support system liquidity, especially during the trading session on October 10.

At the launch of a money transfer service between Mobile Money and bank accounts on October 6, Deputy Governor of the State Bank of Vietnam Pham Tien Dung said that after eleven months of pilot implementation, as of the end of August there were about 2.2 million Mobile Money users in the country, of which 68 per cent were in rural or remote areas. He said a goal has been set of 10 million people using Mobile Money by 2023.

Under a recently-issued government Resolution, the State Bank of Vietnam needs to implement prudent and firm monetary policy, ensuring the flexibility to control inflation and stabilize the macroeconomy. In particular, it should be ready to sell foreign currencies when necessary to intervene and stabilize the market.

KB Securities Vietnam (KBSV) has said that if banks use up the new credit limit, then credit in the industry as a whole will increase about 13.2 per cent compared to the beginning of the year. Therefore, the State Bank of Vietnam (SBV) can loosen the limit again, from 0.5-1.2 per cent, to achieve the annual target of 14 per cent.

The State Bank of Vietnam (SBV) has simultaneously increased the refinancing interest rate to 5 per cent per annum, the rediscount rate to 3.5 per cent per annum, the maximum interest rate for demand deposits and terms of less than one month to 0.5 per cent per annum, and term deposits from one month to less than six months to 5.0 per cent per annum. Rates on overnight loans in interbank electronic payments and loans from the SBV to cover capital shortfalls in clearing payments to credit institutions and foreign bank branches is 6.0 per cent per annum.

At a press conference announcing results in the banking industry in the third quarter of 2022, Ms. Ha Thu Giang, Deputy Director of the Credit Department for Economic Sectors at the State Bank of Vietnam (SBV), said that as of September 16, credit in the economy had increased 10.47 per cent compared to the end of 2021 and 17.19 per cent year-on-year.

At a conference on credit management held by the State Bank of Vietnam (SBV), credit institutions evaluated credit control as a useful tool that is suitable for conditions in Vietnam. Current capital demand is significant, so it is not possible to have all of it coming from the banking system and it is necessary to develop other channels such as securities, bonds, public investment, and FDI.

According to the ACB Securities Company (ACBS), the State Bank of Vietnam (SBV) sold some $21 billion of foreign exchange reserves in the first eight months of this year, or 19 per cent of the total. Reserves now stand at $89 billion, or about 12 weeks’ worth of imports, which is still within a safe margin. ACBS expects it will be difficult for the SBV to maintain low interbank interest rates in the near future, because the US Fed is likely to introduce three more rate hikes from now to the end of the year, putting downwards pressure on the VND/USD exchange rate.

The Viet Dragon Securities Corporation (VDSC) has forecast that from now until the end of the year, the State Bank of Vietnam (SBV)’s monetary policy management will face major challenges from the US Fed raising interest rates and the global economic outlook being less optimistic. Vietnam’s economy is also likely to face more difficulties in 2023.