1% interbank rate increase to support exports

According to Nguyen Thi Hong, Head of Monetary Policy Department, in the first months of 2014, money market and foreign exchange movements as well as foreign currency supply and demand are stable. In first five months of the year, import and export balance of the country surplused of US$1.6 billion.

The overall balance of payments also surplus of US$10 billion. That helps the central bank to buy a large amount of foreign currency. Foreign exchange reserves rose to a record US$35 billion. "Absorption capacity of the economy is low, production and business operations have still faced many difficulties. While exports are still positive, grew by 15.4 percent in the first five months. Thus the bank rate adjustment will contribute to support exports in the last six months, thereby supporting economic growth and still keeping inflation in control” Ms. Hong explained.