Monetary policy of State Bank of Vietnam in 2022 in respone to shocks

Abstract

After 2 years encountering with the Covid-19 pandemic, the year of 2022 could be considered as a milestone in recovering the Viet Nam’s economy in general, as well as the strength and soundness of the banking system in particular. However, this year witnessed unexpected, unprecedented and complicated turbulences. The paper aims at summarizing monetary policy measures implemented by the State Bank of Viet Nam in response to both global and domestic shocks in 2022 with significance achievements such as curbing inflation and the lowest devaluation of VND in compared with other countries. Therefore, the paper suggests policy recommendations to overcome difficulties and challenges in 2023 including flexible and prudential monetary policy, appropriate credit growth, and effective policy measures.