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HomeWORLDVietnam's central bank buys $6 bn to shore up reserves

Vietnam’s central bank buys $6 bn to shore up reserves

Iran, Syria to launch joint bank to facilitate trade ties. Image Source: IANS News

Hanoi, May 6 : Vietnam’s central bank has bought around $6 billion since the beginning of the year to boost its foreign exchange reserves, the Vietnam Banks Association’s newspaper reported on Saturday.

A proactive and flexible monetary policy and stable exchange rate have allowed the State Bank of Vietnam (SBV) to continue its purchases of foreign currencies, said SBV Governor Nguyen Thi Hong at a regular meeting of the Cabinet of Ministers in Hanoi.

Last year, Vietnam was forced to sell about $20 billion to support the domestic currency after the dong fell to a record low following aggressive interest rate hikes by the US Federal Reserve, according to market analysts.

The central bank rarely discloses the size of its foreign reserves. In late 2021, it put the holdings at record highs of around $100 billion, Xinhua news agency reported.

Vietnam posted a wider year-on-year trade surplus of $6.35 billion and a slight decline of 1.2 per cent in actual foreign direct investment inflows to $5.85 billion in the January-April period.

The central bank said it will manage monetary policies in a flexible and proactive way and in line with Vietnam’s macroeconomic conditions and international markets.

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