SBV carries out various measures to ensure micro-balance

In 2007, the State Bank of Vietnam (SBV) managed the exchange rate based on the principle that the Vietnam dong pegged at the correct level, bought foreign currencies at a reasonable manner in order to stabilise the exchange rate and increased the State’s foreign currency reserves to ensure micro-balance of the economy, said Mr Nguyen Van Giau SBV governor at a press briefing to review the bank’s work in the year 2007.

Specifically, the State Bank of Vietnam widened the US dollar and Vietnam dong (US$/VND) exchange rate margin from +/-0.25% to +/-0.5% and later +/-0.75%.

With regards to the stock market, the SBV continued to co-ordinate with the State Securities Commission of Vietnam to work out measures to develop the market for the long-term.

The governor appreciated those commercial banks that had strictly implemented SBV’s Instructive No 03 which rules that commercial banks have to reduce their securities backed lending ratio to below 3% of their total outstanding loans before December 31, 2007. SBV said it will adjust the Instructive in which loans to securities investment will be controlled in a new way, however, the adjustment have yet to be revealed.

The equitisation of other State-owned commercial banks will be continued according to the roadmap, after the equitisation of the Bank for Foreign Trade of Vietnam (Vietcombank). However, the IPOs of these banks will be considered so as it will be healthy for both the market and the banks.