The State Bank of Vietnam (SBV) will persist in monetary policy management solutions towards macroeconomic stability, but closely follow all developments to manage the situation in an appropriate manner, SBV Governor Nguyen Thi Hong said, given the Federal Reserve System (Fed)’s latest interest rate increase.
According to the governor, after the Fed hiked the interest rate on September 21, currencies in many countries have depreciated against the US dollar, such as theEuro by 1.31%, British pound by 0.95%, and yuan by 0.44%.
Since the beginning of this year, the Japanese yen has depreciated by 25%, the Euro 13.5%, British pound by 20%, and Thai bath 11.95%, while the Vietnamese dong has depreciated only 3.8%.
As of September 21, the US dollar had increased 15% compared to 2021 and 19% year-on-year. This is the highest increase in the past 38 years and is also the reason why other currencies have depreciated sharply against the US dollar.
In that context, the Vietnamese currency is still among the least depreciated in the world, Hong stated.
She went on to say that the biggest challenge in macroeconomic administration is to control inflation, although international organisations have assessed that this year, Vietnam will be able to curb inflation below 4% as the target set by the National Assembly.
The central bank will continue to control the exchange rate, and intervene in the foreign currency market to limit fluctuations to help stabilise the foreign currency market.