VietNamNet Bridge - Viet Nam’s foreign exchange reserves by the end of July 2015 had reached $37 billion, the State Bank Governor Nguyen Van Binh told the Saigon Economic Times Wednesday.

“This includes reserves in foreign currency, which we can use immediately. And if we include other items such as gold, deposits of the treasury and credit institutions at the State Bank (not in VND) ... the figure is approximately $40 billion. Currently we own 10 tonnes of gold," he said.

This was the first time since the end of last year that the SBV Governor has disclosed the foreign exchange reserve figures.  This was also the first time the Governor has announced the amount of gold reserves.

Vietnam’s forex reserves were thought by some to have declined because of the increase of the trade deficit in the second quarter of 2015.

Late last year the foreign exchange reserves of Vietnam peaked at $36 billion. However, the latest figures show that foreign exchange reserves continue to rise; the State Bank has kept buying foreign currency in recent months.

From 2012 onwards Vietnam did not have many gold reserves. The amount of gold mobilized by commercial banks was huge. Sometime a joint stock bank held up to more than 30 tons of gold.

"The State Bank currently fully controls the gold market and can make intervention from reserves if necessary," Governor Binh said.

He also said that if the domestic gold supply in the country rises as the public sells more, the central bank will buy gold in the country to increase the supply of foreign exchange reserves.

Referring to whether the central bank will keep its commitment to not adjust the exchange rate more than 2% this year, Binh said that the target of 2% would be maintained.

He said that inflation was now under control and it is forecasted to be at a low level at the year end.

The central bank is actively adjusting the interest rates for VND at an appropriate level to facilitate the Ministry of Finance’s issuance of government bonds and treasury bills.

Na Son