(TBTCO) – The notable monetary event last week was the move by the State Bank of Vietnam (SBV) to “release contracts” to banks with good credit growth to optimally regulate credit for the economy. Meanwhile, gold prices are also a notable focus with the heat continuing to increase.
“Unwinding” the credit limit
Last week, the State Bank of Vietnam adjusted the allocation of credit growth targets for commercial banks. Accordingly, the State Bank of Vietnam allows credit institutions with outstanding credit up to 80% of the credit target to proactively add increased limits based on the 2022 rating, at the same time. Give additional priority to credit institutions that focus credit on priority areas of the Government and lower lending interest rates to low levels in recent times. The addition of this limit is the initiative of the State Bank and it is not necessary for credit institutions to request or request additional amounts.
At the same time, the State Bank continues to manage credit growth in 2023 so that it does not exceed the determined target, but still ensures growth space to meet the credit capital needs of the economy.
The State Bank also requires credit institutions to provide safe and healthy credit, support businesses, ensure credit growth in accordance with risk management capacity, capital mobilization ability, as well as balance sufficient capital sources to credit extension. Banks must continue to maintain stable deposit interest rates and actively reduce lending interest rates, directing credit to production and business sectors, priority sectors and growth drivers according to the policy of the Bank. Government, promptly meet the capital needs of people and businesses.
|Credit regulation is made more flexible. Photo: TL
|The State Bank requires banks to strictly comply with regulations on insurance agency activities. Interbank interest rates continue to cool down.
VNBA talks about the role of coordinating industry associations
Last week, leaders of the Vietnam Banking Association (VNBA) also had discussions saying that industry organizations need to have better coordination to support each other to overcome difficulties.
According to VNBA, to support the business community in general – including real estate businesses – in addition to the solutions that the Government and ministries and branches have been implementing, businesses must always be autonomous in their actions. business, anticipating all possible risks.
In addition, Mr. Nguyen Quoc Hung – General Secretary of VNBA said that it is necessary to promote the role of industry associations so that when facing difficulties, these organizations will work together on behalf of businesses to find ways to solve problems. , find common ground, propose solutions and make recommendations to management agencies.
In cases where it cannot be resolved or is beyond authority, only then should we report to the Government, rather than just “crying” to the Government when encountering difficulties.
“If the above is done, it will promote the role of industry associations and industry commanders to participate and make decisions within their authority. The government is relieved from the current excessive workload” – Mr. Hung said.
Stable exchange rate
In the past week, the central exchange rate announced by the State Bank of Vietnam tended to decrease while the listed exchange rate of Vietcombank increased. However, the general fluctuations of the central exchange rate and those of commercial banks are not large.
The central exchange rate at the beginning of the week was recorded at 23,947 VND/USD, but went into a downward trend in the following sessions, closing the Friday session at 23,923 VND/USD.
At Vietcombank, the selling exchange rate at the beginning of the week was 24,415 VND/USD, the following sessions increased slightly and at the end of the week it was recorded at 24,450 VND/USD, an increase of 35 VND per USD compared to the first session of the week.
November continued to trade surplus
According to the General Statistics Office, the trade balance of goods in November 2023 had a trade surplus of 1.28 billion USD. In general, for the first 11 months of 2023, the trade balance of goods is estimated to have a trade surplus of 25.83 billion USD (the same period last year had a trade surplus of 10.3 billion USD). Of which, the domestic economic sector’s trade deficit was 19.99 billion USD; The foreign invested sector (including crude oil) had a trade surplus of 45.82 billion USD.
Last week, the General Statistics Office also announced November macroeconomic data showing that the USD price index in November 2023 increased by 0.05% compared to the previous month; an increase of 1.61% compared to December 2022; down 1.03% over the same period last year.
Currently, economic developments at home and abroad tend to have favorable price tags. The DXY index, which measures the strength of the USD, remains at a low level of just over 103 points, while Vietnam’s trade surplus continues to increase, supporting the increase in domestic USD supply.
In addition, according to the assessment of Dr. Chau Dinh Linh – Lecturer at Ho Chi Minh City Banking University, from now until Tet, the foreign currency supply will also be supplemented from remittances.
|Both world and domestic gold prices increased sharply last week. Photo: TL
Gold price breaks record
Last week, a new gold price record was recorded when SJC 9999 gold sold surpassed the historic mark of 74 million VND/tael. At the end of the week, gold prices reversed and decreased, but were still at a fairly high price level. Specifically, SJC 9999 gold price on December 1 recorded transactions at 72.3 million VND/tael purchased and 73.5 million VND/tael sold.
According to Mr. Nguyen Tri Hieu – economic expert, gold is currently a safe and attractive haven at this time. However, investors also need to be very careful, because gold prices can fluctuate rapidly in a short period of time. During this period, investors must continuously monitor gold market developments.
Gold prices have increased partly due to the sharp decline in domestic interest rates in recent times. Currently, 12-month term deposit interest rates at some banks have even decreased to below 5%/year, lower than the interest rates of the period. before the Covid-19 epidemic. Meanwhile, world gold prices also entered a period of strong sublimation, which was also a factor affecting domestic gold prices last week.
On the afternoon of December 1, Vietnam time, world gold continues to trade at a fairly high price level of about 2,041 USD/ounce.
Regulate so that total growth does not exceed the general target
According to the State Bank, by November 22, 2023, credit growth for the entire system will only reach 8.21%, lower than the target targeted at the beginning of the year. The credit growth rate of the credit institution system is not uniform, so the State Bank regulates credit growth targets throughout the system from credit institutions that do not fully utilize the credit growth target to credit institutions that need to continue to expand. credit growth.