Do not let gold price fluctuations affect exchange rates and inflation

On the afternoon of November 11, in his closing speech on the first group of issues in the banking sector, National Assembly Chairman Tran Thanh Man said: At the meeting, 43 National Assembly deputies questioned, 1 deputy debated; 11 deputies registered but were not allowed to ask questions, and requested that the deputies send their questions to the National Assembly Standing Committee to be forwarded to the Governor of the State Bank for response according to regulations.

National Assembly Chairman Tran Thanh Man chairs the question-and-answer session. Photo: Doan Tan/VNA

The National Assembly Chairman stated: The question and answer session was lively and frank. The questions of the National Assembly deputies closely followed the content of the question and were specific and clear. This was the second time answering questions during the term of the 15th National Assembly. The Governor of the State Bank was well prepared in terms of content, had a firm grasp of the issues, covered other macro policies, and directly answered the issues raised by the National Assembly deputies.

The National Assembly Chairman assessed that over the past time, the banking sector has achieved many important results. The proactive, flexible, timely and effective management of monetary policy, closely coordinated with fiscal policy and other macroeconomic policies, has contributed to curbing inflation, stabilizing the macro-economy and supporting economic growth. The money and foreign exchange markets have been basically stable, lending interest rates have decreased, and the system of credit institutions has operated safely. Exchange rates have been managed flexibly and synchronously within the framework of the general monetary policy. The gap between domestic and world gold prices has decreased. Support for loans and exemption and reduction of interest rates for people and businesses to restore production and business after the COVID-19 pandemic and natural disasters has been implemented synchronously and effectively.

In addition to the achievements, the banking sector still faces many difficulties and challenges. Inflation has decreased but is not sustainable and still has potential risks. Continuing to reduce interest rates is difficult to implement. The pressure on capital supply of the credit institution system is still large. The gold market is not stable and sustainable, and has potential risks; there is still a difference between domestic and international gold prices. The work of synthesizing, reviewing and supporting customers who borrow capital affected by natural disasters is still difficult and problematic.

Through the question-and-answer session, the National Assembly Chairman requested the Government, the State Bank of Vietnam, and relevant ministries and branches to absorb the opinions of National Assembly deputies and have effective solutions to overcome them, focusing on key issues.

Accordingly, continue to closely follow market developments and the domestic and foreign economic situation to promptly, effectively, proactively and flexibly manage monetary policy, ensuring liquidity for the credit institution system, contributing to stabilizing the monetary and foreign exchange markets; manage interest rates and exchange rates in line with macroeconomic balance and inflation; continue to direct credit institutions to reduce costs to reduce lending interest rates. At the same time, implement proactive and flexible credit management solutions in line with macroeconomic developments and inflation, meeting capital needs for the economy; direct credit institutions to direct credit to production, business, priority sectors and economic growth activities; strictly control credit to areas with potential risks.

The Government, the State Bank of Vietnam, ministries and branches shall implement management solutions to stabilize the gold market; enhance the State's role in managing and regulating the gold market in accordance with regulations; prevent fluctuations in gold prices from affecting exchange rates, inflation and stabilizing the macro-economy; study measures to encourage people to sell gold to invest in production and business. In 2025, review Decree No. 24/2012/ND-CP dated April 3, 2012 on the management of gold trading activities; propose amendments and supplements in accordance with the practical situation.

The National Assembly Chairman requested to soon have policies to restructure debt repayment terms, maintain debt groups, waive and reduce interest rates, and lower lending rates to support and remove difficulties for customers to stabilize production and business after storms, floods, and landslides; promote green credit; coordinate with ministries, branches, and agencies to remove obstacles and accelerate the smooth implementation of preferential credit programs.

Source