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Posts Tagged ‘monetary’

France to push G20 monetary reforms: finance minister

In Uncategorized on November 17, 2010 at 3:26 am

Monetary measures boost shares

In Uncategorized on November 9, 2010 at 3:23 am

Monetary, fiscal policies should act in tandem for sustainable growth: NA

In Uncategorized on May 8, 2010 at 4:48 pm




Monetary, fiscal policies should act in tandem for sustainable growth: NA


QĐND – Saturday, May 08, 2010, 22:28 (GMT+7)

Monetary and fiscal policies adopted by the State Bank of Vietnam and the Ministry of Finance respectively have to compliment each other to help curb inflation, improve the balance of payments and reduce the State budget deficit, NA deputies said on Friday.


National Assembly Chairman Nguyen Phu Trong speaks at the opening of the 31st National Assembly Standing Committee session on May 6.


This would, in turn, ensure sustainable growth, they added.


The National Assembly Standing Committee gave its opinion on a Government report on the socio-economic situation and the State budget in 2009 and the first months of 2010.  


In the report released on the second day of the 31st session in Hanoi on May 7, the Government said 17 of 25 targets assigned by the NA had been fulfilled or exceeded in 2009.


Some impressive achievements were gained in implementing the socio-economic development plan in early months of this year, the report said.  


The foreign exchange market had been gradually stabilized and its liquidity was improved. The exchange rate of the dong to the US dollar on the free market has come close to the official transaction rate at commercial banks.  


However, the consumer price index (CPI) has risen sharply in early months, especially in essential goods that directly affect people’s lives.


In late 2009 and early 2010, most enterprises, especially small and medium-sized ones, faced difficulties in accessing loans and their production and business were drastically affected, negatively impacting economic growth in the remaining months of the year, the report said.  


The trade gap was still high at US$4.7 billion in the first four months of the year in while the balance of payments had reached US$8.8 billion last year, it noted.  


Ha Van Hien, chairman of the NA Economic Committee said, “In the context of uncertain exports, falling foreign currency reserves, rising trade gap, inflation, dong devaluation and pressure of exchange rate adjustment, stabilizing the macro economy will face great challenges.”


Regarding the State budget, the NA Finance and Budget Committee (NAFBC) said overspending at 6.9 percent of GDP should be considered a shortcoming in State budget management last year.


The NAFBC warned that managing the State budget and ensuring national financial security will become more difficult in 2010 than 2009 since the increase in budget deficit to over 5 percent of the GDP as well as the increase in issuance of Government bonds have pushed the Government debt to 44.6 percent of GDP.  


Truong Thi Mai, Chairwoman of the NA Social Affairs Committee, said, “The NA and Government are determined to reduce the budget deficit. Though the Government debt still stands at the safe threshold, it will cross this threshold in one or two years if the overspending goes unchecked.”


Source: VietnamNet/SGGP


 


Source: QDND

Monetary, fiscal policies should act in tandem for sustainable growth: NA

In Uncategorized on May 8, 2010 at 12:42 pm

Monetary and fiscal policies adopted by the State Bank of Vietnam and the Ministry of Finance respectively have to compliment each other to help curb inflation, improve the balance of payments and reduce the State budget deficit, NA deputies said on Friday.

National Assembly Chairman Nguyen Phu Trong speaks at the opening of the 31st National Assembly Standing Committee session on May 6.

This would, in turn, ensure sustainable growth, they added.
 
The National Assembly Standing Committee gave its opinion on a Government report on the socio-economic situation and the State budget in 2009 and the first months of 2010.
 
In the report released on the second day of the 31st session in Hanoi on May 7, the Government said 17 of 25 targets assigned by the NA had been fulfilled or exceeded in 2009.
 
Some impressive achievements were gained in implementing the socio-economic development plan in early months of this year, the report said.
 
The foreign exchange market had been gradually stabilized and its liquidity was improved. The exchange rate of the dong to the US dollar on the free market has come close to the official transaction rate at commercial banks.
 
However, the consumer price index (CPI) has risen sharply in early months, especially in essential goods that directly affect people’s lives.
 
In late 2009 and early 2010, most enterprises, especially small and medium-sized ones, faced difficulties in accessing loans and their production and business were drastically affected, negatively impacting economic growth in the remaining months of the year, the report said.
 
The trade gap was still high at US$4.7 billion in the first four months of the year in while the balance of payments had reached US$8.8 billion last year, it noted.
 
Ha Van Hien, chairman of the NA Economic Committee said, “In the context of uncertain exports, falling foreign currency reserves, rising trade gap, inflation, dong devaluation and pressure of exchange rate adjustment, stabilizing the macro economy will face great challenges.”
 
Regarding the State budget, the NA Finance and Budget Committee (NAFBC) said overspending at 6.9 percent of GDP should be considered a shortcoming in State budget management last year.
 
The NAFBC warned that managing the State budget and ensuring national financial security will become more difficult in 2010 than 2009 since the increase in budget deficit to over 5 percent of the GDP as well as the increase in issuance of Government bonds have pushed the Government debt to 44.6 percent of GDP.
 
Truong Thi Mai, Chairwoman of the NA Social Affairs Committee, said, “The NA and Government are determined to reduce the budget deficit. Though the Government debt still stands at the safe threshold, it will cross this threshold in one or two years if the overspending goes unchecked.”

Source: SGGP

Prime Minister endorses nuanced monetary policy

In Uncategorized on April 21, 2010 at 10:41 am

The State Bank of Vietnam (SBV) should continue its flexible monetary policy to help cut the trade deficit and restrain inflation, Prime Minister Nguyen Tan Dung has said.


The Prime Minister’s main concern was ensuring that the country reaches its 6.5 percent GDP growth target for the year.

PM Nguyen Tan Dung speaks at a meeting with state bank leaders on April 20, encouraging the bank to maintain its flexible monetary policy (Photo: VNA) 

Working with the SBV leaders in Hanoi on April 20, Mr. Dung said he appreciated the central bank’s contributions to achieving a GDP growth of 5.83 percent in the first quarter.


The central bank’s efforts have helped reduce lending rates, stabilize exchange rates and boost capital mobilization at commercial banks, he said


However, the bank should try to lower the deposit interest rate to about 10 percent and the lending interest rate to 12-13 percent per year in order to boost exports and reduce the trade deficit, he said.


He also asked the bank to ensure credit growth at 25 percent and total means of payment growth at 20 percent while strengthening control over the foreign exchange market and the trade balance.


Cutting the trade deficit would also require banks to coordinate with the finance, and industry and trade ministries to control market prices and restrict the import of non-essential goods like cars, mobile phones and liquor, Mr. Dung said.


The Prime Minister added that the central bank should continue ensuring that credit organizations provide loans at negotiable interest rates. He also asked SBV to keep a close watch on foreign currency loans used for imports.


He instructed small commercial banks to increase their capital to at least VND3 trillion each or be merged.


Mr. Dung also said the bank needs to work harder to provide the public with prompt and official information, especially about financial and monetary policies, and prices.

Source: SGGP

War on inflation requires flexible monetary policy, expert says

In Uncategorized on April 20, 2010 at 5:41 am

A nuanced and flexible monetary policy is the best way to restrain inflation in Vietnam, a prominent economist has said, eschewing one-size-fits-all remedies.


Dr. Tran Hoang Ngan, a member of National Advisory Council for Financial and Monetary Policy, said increasing global demand fueled by the ongoing world economic recovery had pushed Vietnam’s consumer price index (CPI) up 4.12 percent since the beginning of the year.

Dr. Tran Hoang Ngan, a member of the National Advisory Council for Financial and Monetary Policy (Photo: SGGP)

The surging cost of imported materials, electricity, water, and fuel has upped manufacturing input costs, resulting in commodity price hikes, he said, adding that a large money supply on the market had also contributed to the hikes.


The common prescription international financial organizations give for inflation is to tighten financial and monetary policies, but Ngan said monetary policy must be based on the specific conditions present in each country.


In Vietnam, inflation has been caused by both the increased money supply and increased production costs, he said.


“Therefore, the country should run a flexible financial and monetary policy, ensuring a large-enough capital supply for the economy, especially for production and trade activities.”


Such a policy will help meet the Government’s target of keeping inflation under 10 percent for the year, and it will boost economic growth, he said.


He said it was not necessary to raise the prime rate or the compulsory reserve rate at commercial banks.


The best way to meet the 6.5 percent GDP growth target for the year, he said, would be for Government agencies to keep petrol, oil, electricity and coal prices stable “on a long-term basis and strengthen control over market prices.”


To ease the trade deficit, which stood at US$3.5 billion in the Jan-Mar period, or 25 percent of total export turnover, Ngan said Vietnam should restrain its imports of luxury goods and boost exports by supporting exporters and export manufacturers.


Dr. Ngan also urged that exchange and interest rates be dealt with cautiously.
 
“The State Bank of Vietnam should prevent exchange rates from fluctuating because fluctuation may give rise to inflation. It should also strengthen foreign exchange reserves as an instrument to stabilize exchange rates.”


Dr. Ngan suggested that the state lender and commercial banks gradually reduce interest rates, though he said the current deposit and lending rates of 11-12 percent and 14-15 percent, respectively, were reasonable.
 
He said that lowering the deposit rate to 9-10 percent and the lending rate to 12-13 percent over time could help facilitate business growth in Vietnam.

Source: SGGP

Indonesia proposes Asian monetary fund

In Uncategorized on November 28, 2008 at 5:10 pm

Jakarta (VNA) – Indonesia has proposed the setting up of an Asian monetary fund at the ongoing third Asian Parliamentary Assembly (APA) meeting in Jakarta.

“The aim is helping the economy of the countries in Asia which had been hit by the impact of the global economic crisis,” chairman of Indonesia’s House of Representatives’ Commission I Theo L Sambuaga was quoted by Antara news agency as saying on November 27 on the sidelines of the APA meeting at the Jakarta Convention Centre.

The proposal, said Theo Sambuaga who was also a member of the Indonesian delegation, had been submitted directly by chairman of the House inter-parliamentary cooperation agency (BKSAP) Abdillah Toha in the presence of the legislators during the general debate at the Assembly Hall.

“Asia needs to be strong along with strengthening the commodity trading between the Asian countries, minimising the impact of the global economic crisis,” Abdillah Toha said at the general debate.

In addition, he said, Asia needed to form a transparent capital flow mechanism, because the flow of capital has recently become out of control and even become rather speculative.

He also said that such Asian Monetary Fund could foster the domestic markets between the Asian countries, and also develop and strengthen an economically weak Asian infrastructure.-