Le Duc Thuy, President of the National Financial Supervisory Commission, said the government convened an urgent meeting on November 4 to discuss the macro economy and an aid package to stabilize markets.

The government dismissed rumours by saying that they would not adjust the dong to US dollar exchange rate. Such an adjustment is considered to be unbeneficial and cause instability on the market and reduce people’s confidence in the Vietnamese dong and the government’s economic regulatory policy. It can also bring about much more inflation.

The government’s resolve is based on the fact that the price of the US dollar is declining on the world market while the country’s export grows by 23 percent.

The government has also permitted banks to stop reducing their interest rates and to offer interest rates at market rates.

Some worry that this move could push interest rates up; however, such an increase is within the government’s predictions. Moreover, in the current context, an increase in the interest rates of the Vietnamese dong will make it more valuable and stabilize public confidence, curbing inflation by year end.

Increasing the Vietnamese dong’s interest rates is also seen as a measure to tighten the money supply.