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PM chairs meeting on impacts from China’s devaluation of yuan

Prime Minister Nguyen Tan Dung chaired a meeting with relevant ministries, sectors and agencies to look at the possible impacts of the Chinese yuan’s devaluation on Vietnam’s economy.
PM chairs meeting on impacts from China’s devaluation of yuan ảnh 1PM Nguyen Tan Dung speaks at the meeting (Photo: VNA)
Prime Minister Nguyen Tan Dung chaired a meeting with relevant ministries, sectors and agencies to look at the possible impacts of the Chinese yuan’s devaluation on Vietnam’s economy. The meeting agreed that China’s move has immediately affected the exchange rate, the foreign currency market and the stock market, with both advantages and challenges expected for the domestic economy in the time ahead.
The State Bank’s response by widening the trading band of Vietnamese dong/US dollar (VND/USD) 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-bank USD/VND exchange rate dropped below the ceiling on August 14.
The PM required the ministries and agencies to continue keeping a close watch of the domestic, regional and global situations while assessing impacts on each field, specially the forex, stock and gold markets, import-export, investment, payment balance public debt and economic growth. He said relevant ministries and sectors must enhance coordination to take appropriate counter measures to global monetary changes so as to minimise adverse impacts on the Vietnamese economy. He also told them to steer monetary and exchange rate policies in an active and flexible fashion and in line with the market, helping to ensure the macro economy and the stability of the domestic currency.-VNA
VNA

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