National foreign currency reserve estimated at $15b

The forex rate currently is stable, Vietnam’s foreign currency reserve has been doubled from $7.5 billion to $15 billion, the country has enjoyed trade surplus in several months and monthly inflation has decreased from 3% per month to below 1% per month during June, July, and August, 2011, Le Xuan Nghia, deputy chairman of National Financial Supervisory Committee (NFSC) said while addressing a high-level business delegation of the US-Asean Business Council and NFSC.
According to Nghia, in the first quarter (Q1), Vietnam’s economic growth reached only 5.43%, foreign currency reserve remained low with only 3-5 weeks of imports, monthly inflation was at 2-3% per month and the forex rate witnessed strong fluctuations with 22,500 dong per US dollar. However, since May 2011, the aforementioned difficulties have begun to stop.

Notably, the interest rates started to go down, of which, the interbank interest rate declined strongly although the government still kept the tightening monetary and financial policies.

“At this moment, we can say the most difficult period of Vietnam’s economy is over” Nghia said.

NFSC forecasts that in 2011, Vietnam’s GDP (gross domestic product) growth would be about 5.8% and it would be 6.5% in 2012, the country’s CPI (consumer price index) is estimated to rise 19% but if excluding the prices of food, foodstuff and petrol, it would be only 13% in 2011. In 2012, the CPI is forecasted at 9% and if excluding the prices of food, foodstuff and petrol, it would be 6%.

NFSC also said that the country’s current account deficit (%/GDP) in 2011 would be 7% and 8% in 2012, state budget deficit in 2011 at 5.1% and 4.9% in 2012, foreign currency reserve would increase from 8-weeks of imports in 2011 to 10-weeks of import in 2012 and the investment ratio on GDP would be 37% in 2011 and 38% in 2012. – Vietbiz24

Tags: Vietnam foreign currency reserves

Posted by VBN on Sep 9 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry