Officials from the State Bank of Vietnam have confirmed that the country’s forex reserves have doubled, thanks to a solid investment in US dollars. What was once enough money to pay for 10 weeks of imports now buys 20. This windfall comes with a price, however, as inflation will now increase. Deputy Governor of the State Bank, Nguyen Dong Tien, hopes to keep the adverse effects to a minimum. Reports Daily Times:
Economists say double-digit inflation is a possibility, but Tien told the news conference that the central bank had stepped up its draining of inflation-fueling funds from the economy through open market transactions.
Read more: Vietnam doubles forex reserves
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