Fear of foreign currency "bleeding" when Vietnam's USD interest rate is 0%, US's is 5.5%/year

On the morning of May 29, continuing the 7th Session, the National Assembly discussed in the hall the socio-economic situation and the State budget.

Important resource from remittances

Through studying reports and the socio-economic situation in the first months of 2024, delegate Nguyen Truc Son (Ben Tre delegation) assessed that with the efforts of the entire political system, the Government, central ministries and local authorities, our country's socio-economy has many "bright spots", especially economic growth, budget revenue, disbursement of public investment capital and progress of key national projects.

Through the Government's Report and the Economic Committee's Review Report, delegate Truc Son realized that the proposed solutions are very comprehensive, covering all areas with many new points. "If we can implement these solutions, our country's economic growth will reach its goal in 2024," said Mr. Son.

Delegate Nguyen Truc Son, Ben Tre delegation (Photo: Quochoi.vn).

In the context of the Government's efforts to mobilize resources, with the goal of mobilizing 100,000 billion VND for development investment, Mr. Son assessed that this is a very large resource to mobilize for investment in key projects. From here, Mr. Son suggested that there should be a solution to mobilize foreign currency from the people.

The Ben Tre delegation said that the current amount of remittances from the people is very large, more than 20 billion USD per year. In fact, people holding USD always watch the State Bank manage the central exchange rate to have a plan for using and holding.

"If the central exchange rate increases, people will hoard more USD, while surrounding countries increase USD interest rates, we should also think about whether there is a situation of USD flowing from our country to foreign countries or not? Because if our USD mobilization interest rate is 0%, surrounding countries, especially the US, will increase by 5.5%/year," said delegate Son.

According to delegate Son, the Government should calculate and mobilize resources, including domestic and foreign currencies, for development investment, then there will be more resources. Because instead of borrowing from abroad, also in USD, people have a lot of USD, so the Government needs to pay attention to this resource.

Concerns about the phenomenon of economic gold

Participating in the speech, delegate Nguyen Thi Thu Thuy (Binh Dinh delegation) expressed concern that many important socio-economic targets have not been achieved as expected. Therefore, the delegate suggested that the Government evaluate and analyze more carefully the difficulties, causes, and forecast the situation to have practical solutions for the set targets and goals.

Delegate Nguyen Thi Thu Thuy, Binh Dinh delegation (Photo: Quochoi.vn).

According to the delegate, in the first months of the year, production still faced many difficulties, the market was narrowed, input costs and transportation costs increased... Therefore, it is recommended that the Government continue to have support packages to stimulate demand, develop the domestic market, increase purchasing power to contribute to promoting production and business.

In particular, according to delegates, in the first months of the year, prices of some goods and services increased, especially gold prices, USD exchange rates, and aviation service prices, leading to some negative impacts.

“Gold and USD have become the preferred reserve choice of many families and individuals. If there is no good solution and no early control, it will lead to the phenomenon of gold-ization and USD-ization in social transactions,” Ms. Thuy acknowledged.

In addition, the female delegate also said that the price of domestic air services has increased, making it difficult to buy. Domestic tourism is difficult to compete with foreign tours. Therefore, delegate Thuy suggested that the Government direct the sectors to study solutions to stabilize prices soon in the near future .

Source: https://www.nguoiduatin.vn/lo-chay-mau-ngoai-te-khi-lai-suat-usd-cua-viet-nam-my-55nam-a665843.html