Vietnam SBV Confirms No Plans to Issue Mandatory t-Bills: Senior Official
The State Bank of Vietnam, the country’s central bank, has no plans to issue mandatory treasury bills (t-bills) in order to withdraw money from the domestic economy, a senior official of the SBV said, refuting rumors that such plans had been made.
“We [the SBV] have made no such plan as was widely rumored,” Nguyen Ngoc Bao, head of the SBV’s Monetary Policy Department told.
“The SBV is adopting flexible monetary policies, and normally it makes public any new policies to boost transparency for the domestic monetary market,” Bao emphasized in a note.
Bao also attributed the rumor to the information that recently the SBV announced that it would curb credit growth at 25 per cent to 27 per cent from its initial target of 30 per cent growth.
The SBV has requested that credit institutions increase savings from local people and boost loans to the economy, particularly local firms that plan to expand their operations, Bao explained, adding that the SBV recently also allowed commercial banks to use dollar debts as collaterals to raise more funds to lend.
The SBV issued VND20.3 trillion in mandatory t-bills on March 17 last year to withdraw cash from the economy to combat inflation, the paper said. (Vietnam Economic Times)
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