Monetary policies – An effective means to curb inflation

VGP – In an article recently published on VGP to review the performance of banking system in 2008, Mr. Nguyễn Văn Giàu, Governor of the State Bank of Việt Nam (SBV) pointed out both achievements and valuable lessons to further upgrade the whole system and raise its quality.

December 27, 2008 10:00 AM GMT+7

Banks have fruitfully applied many monetary policies to cope with inflation

Governor Giàu briefed that to prevent inflation, the SBV decided to increase the compulsory reserve; issue treasury bills; raise interest rates and foreign exchange rates. These measures were introduced to take money from the circulation while ensuring the liquidity of the economy and markets. SBV has also strictly monitor the markets of foreign exchange markets and credit organizations.

SBV is gradually loosen its monetary policies in order to timely adjust the primary interest rate and compulsory reserves.

It has also offered funds for maintaining a proper growth rate and preventing economic recession. Compared with 2007, investment credit allocated for different economic sectors has increased.

The banking system has helped prevent economic recession

Concluding the article, Governor Giàu emphasized that, "We are firmly convinced that, in 2009, Việt Nam’s banking system will continue to spare no efforts to give a hand to the fulfillment of socio-economic development goals".

By Phương Hạnh