The State Bank of Viet Nam (SBV) underscores that the focus of its monetary policy framework is to promote macroeconomic stability and to control inflation. 

Governor of the State Bank of Viet Nam Nguyen Thi Hong

Governor of the State Bank of Viet Nam Nguyen Thi Hong made that statement during her virtual meeting with U.S. Secretary of the Treasury Janet L. Yellen on July 19.

Viet Nam is bound under the Articles of Agreement of the International Monetary Fund (IMF) to avoid manipulating its exchange rate in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage and will refrain from any competitive devaluation of the Vietnamese dong, Nguyen underscored. 

The SBV is also making ongoing efforts to further modernize and make more transparent its monetary policy and exchange rate framework, she added.  

In support of these efforts, the SBV will continue to improve exchange rate flexibility over time, allowing the Vietnamese dong to move in line with the stage of development of the financial and foreign exchange markets and with economic fundamentals, while maintaining macroeconomic and financial market stability, the Governor of the SBV affirmed. 

For her side, Secretary Yellen said that the SBV’s attention to these issues over time not only will address Treasury’s concerns, but also will support the further development of Viet Nam’s financial markets and enhance its macroeconomic and financial resilience.

Both sides committed to maintaining close cooperation between the Treasury and the SBV, and look forward to addressing other shared challenges, such as supporting a strong and inclusive recovery from the COVID-19 pandemic.