PM Nguyen Tan Dung presides over a meeting to assess the impacts of the Chinese yuan weakening on the national economy, Ha Noi, August 14, 2015. Photo: VGP

After listening to reports of leaders from the State Bank of Viet Nam (SBV) and other related ministries and agencies, PM Dung appraised the prompt and suitable response of the SBV and these ministries.

He asked for close monitoring of the international, regional and domestic situations and evaluation of possible impacts on all fields, especially foreign currency, stock, gold markets, imports and exports, investment, payment balance, State budget, public debt, production and manufacturing and economic growth.

The Government chief urged relevant ministries and agencies to strengthen coordination to propose suitable policies to uphold positive impacts and mitigate consequences of negative impacts on Viet Nam’s economy.

The Government will continue pursuing an active and flexible monetary policy in order to ensure the stable value of the Vietnamese currency, closely combine monetary policy with fiscal policy and other fiscal tools to stablize macroeconomy and achieve the goals set for this year, PM Dung said.

He tasked inferior levels to seek long term solutions to secure a stable and favorable environment for fast ad sustainable developmet.

Within three days from August 11-13, the Chinese yuan was devaluated by 4.6%, which immediately influenced on Viet Nam’s foreign exchange rate, foreign and stock markets.

The State Bank’s response by widening the trading band of VND/US$ from +/- 1 percent to +/-2 percent on August 11 was considered a timely and suitable move, taking into account factors impacting the financial and monetary markets, trade and investment and ensuring the overall interests of the economy.

The forex market showed signs of stabilizing while the inter-banking US$/VND exchange rate dropped below the ceiling on August 14.

By Thuy Dung