Capital funneled into priority fields: central bank

• State Bank of Vietnam cuts official interest rates
• Vietnam, Cambodia’s central banks look to foster partnership

As of September 24, the M2 money supply had increased 8.58 percent while outstanding loans provided for the economy had grown 8.64 percent from the end of 2018

At a press conference in Hanoi on October 1, SBV Deputy Governor Dao Minh Tu said the central bank has kept steering the monetary policy in a proactive, flexible and prudent manner, and coordinating it with the fiscal policy and other macro-economic policies to control inflation, support economic growth, and stabilise the monetary and forex markets.

As of September 24, the M2 money supply had increased 8.58 percent compared to the end of 2018. The liquidity of the credit organisation system has been ensured.

For 2019, the SBV targets that the M2 money supply and credit will grow about 13 percent and 14 percent, respectively, which can be adapted to the reality.

Interest rates have been aligned with developments in the macro-economy and the monetary market, Tu said, noting that amidst many foreign central banks’ reduction of interest rates, the SBV cut annual benchmark interest rates by 0.25 percent on September 16 to continue helping with the economy and the credit organisation system’s liquidity.

Regarding the forex market, he pointed out the relatively stable exchange rates, which have been adjusted in line with the reality, the market’s ensured liquidity, smooth transactions in foreign currencies, and the satisfied legal demand for foreign currencies.

The Deputy Governor said thanks to those moves, the banking sector has basically met businesses and people’s demand for capital.

As of September 24, outstanding loans provided for the economy had grown 8.64 percent from the end of 2018, he noted.

For the rest of 2019, the SBV will continue promoting capital supply for production and business fields, especially the priority ones, and facilitating businesses and people’s access to credit.

Statistics also show improvements relevant to non-cash payment.

In the first seven months of 2019, financial transactions via the internet numbered more than 226 million with a combined value of some 10.9 quadrillion VND (470.2 billion USD), respectively up 51.8 percent and 18.3 percent year on year. Meanwhile, there were nearly 202 million transactions via mobile phone worth over 2.09 quadrillion VND, up 104.9 percent and 155.3 percent, respectively.