VietNamNet Bridge – Vietnam’s foreign exchange reserves have reached a record high of some US$38 billion, excluding gold, the governor of the State Bank of Vietnam (SBV) said.

Illustrative image -- File photo

Le Minh Hung told the Daily that the central bank has made smooth foreign currency purchases since early this year thanks to ample supply.

In the first 5-1/2 months, it bought nearly US$8 billion, taking the total foreign reserves to US$38 billion. Meanwhile, the nation’s foreign reserves in gold remain low.

Hung said the gold and forex markets are faring well. The U.S. dollar turned firmer against the Vietnam dong two weeks ago but it still appreciated within the allowable band. The central bank reduced dollar buying at that time before resuming purchases at a normal pace.

The governor expected the foreign reserves to increase further. Besides, he appraised the application of the average daily inter-bank exchange rate between the dong and the greenback with calculations of developments of the Chinese yuan and other strong currencies.

As for some foreign-invested enterprises that have large revenues in foreign currency from export activities and deposit them at 100% foreign-owned banks in Vietnam, Hung said the SBV strictly monitors their export-import payments in foreign currency.

The governor mentioned the possibility of further rate cuts in the coming time. Banks will limit loans for the real estate sector and build-operate-transfer (BOT) projects but focus more on agriculture, aquaculture, industry, consumer goods, exports and supporting industries.

The central bank will consider raising credit quotas for banks lending to production and business, not property and BOT projects, Hung stressed.

For the bank restructuring scheme, Hung said the project would take time but the SBV will secure transparency during the process.

SGT