Executive leader of the Monetary Policy Department in Vietnam

Executive leader of the Monetary Policy Department in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is the function of the Monetary Policy Department in Vietnam?

According to Article 1 of Decision 2201/QD-NHNN in 2008, Monetary Policy Department is a unit within the organizational structure of the State Bank with the function of advising and assisting the Governor in formulating national monetary policy and using monetary policy tools according to the provisions of law.

2. Executive leader of the Monetary Policy Department in Vietnam

- The leader of the Monetary Policy Department is the Director. Assisting the Director are a number of Deputy Directors, Directors and Deputy Directors appointed, dismissed and dismissed by the Governor.

The current Director of the Monetary Policy Department is Mr. Pham Chi Quang.

- Duties and powers of the Director:

+ Organize the implementation of the Department's tasks as defined in Article 2 and be responsible to the Governor and the law for all activities of the Department;

+ Decide on the Department's work program and plan and apply necessary measures according to authority to ensure the good performance of assigned tasks;

+ Implement management and use of officials and civil servants according to the decentralization and authorization of the Governor;

+ By order of the Governor, sign administrative documents according to authority.

- Duties and powers of the Deputy Director:

+ Comply with the assignment of the Director of Department; Assist the Director of the Department in directing and operating a number of work areas of the Department and be responsible to the Director and the law for the assigned work areas;

+ Sign on behalf of the Director a number of administrative documents as assigned by the Director;

+ When the Director is absent, a Deputy Director is authorized (in writing) to act on behalf of the Director to manage and handle the Department's affairs, take responsibility for the resolved tasks, and report back when the Director of Department is present.

(Article 4 of Decision 2201/QD-NHNN 2008)

3. Duties and powers of the Monetary Policy Department in Vietnam

The tasks and powers of the Monetary Policy Department are specified in Article 2 of Decision 2201/QD-NHNN in 2008, including:

- Advise and assist the Governor in submitting to competent authorities for promulgation or promulgating according to his authority legal documents on national monetary policy and general mechanisms and regimes on credit activities; take charge and coordinate with relevant units to organize implementation after approval.

- Advise and assist the Governor in submitting to competent authorities a plan to supply additional money into circulation and annual monetary policy management measures in accordance with macroeconomic goals and the State's socio-economic development orientation.

- Submit to the Governor for promulgation or submit to competent authorities for promulgation mechanisms and solutions to regulate currency circulation to serve monetary policy.

- Develop and submit to the Governor a mechanism to use monetary policy tools, including: interest rates, required reserves, and tools to implement monetary policy according to the provisions of law.

- Develop and submit to the Governor for approval periodically or unexpectedly when necessary; design a plan to supply additional money into circulation or withdraw money from circulation within the approved money supply plan limit; coordinate with the Foreign Exchange Management Department, Credit Department, and Exchange Department to organize implementation through open market operations, refinancing, rediscounting, overnight lending, and the interbank foreign currency market.

- Advise and help the Governor determine basic interest rates, refinancing, discounts, rediscounts, overnight lending, and mandatory reserve ratios periodically and unexpectedly when necessary.

- Coordinate with the Foreign Exchange Management Department to advise and assist the Governor in determining exchange rates between Vietnam Dong and foreign currencies.

- Preside over and synthesize economic, financial, and monetary developments at home and abroad; analyze and forecast the available capital of credit institutions; the monetary inflation rate and other macroeconomic indicators serve as the basis for building and operating monetary policy.

- Develop and submit to the Governor for approval or submit to competent authorities for approval of general mechanisms and regimes on credit activities; take charge and coordinate with units to guide credit institutions in implementation after approval.

- Help the Governor give opinions and propose solutions to ministries and branches on managing macroeconomic policies related to national monetary policy, including monetary programs committed to the IMF and other international financial organizations.

- Draft reports on the implementation of monetary policy monthly, quarterly, annually, and when necessary for the Governor to submit to the Prime Minister and the Government.

- Preside over and coordinate with relevant units to compile and publish the "Annual Report of the State Bank".

- Implement the information and reporting regime according to the regulations of the State Bank and the law.

- Carry out tasks assigned by the Governor.

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