IMF welcomes Vietnam devaluation, calls for more steps

The International Monetary Fund welcomed changes to Vietnam's currency regime and devaluation on Friday, but said the authorities needed a "broader set of policies" to restore macroeconomic stability.

"We welcome the move to normalise operations in the foreign exchange market, by closing the gap between the official and parallel exchange rates. We also welcome the intention to move to a more flexible exchange rate regime," the Fund's senior representative in Vietnam, Benedict Bingham, said.

"For this new regime to be stable, it will need to be underpinned by a broader set of policies to restore macroeconomic stability. In particular, monetary policy will need to focus more decisively on containing inflation, and fiscal policy will need to be put on a clearer consolidation path to contain public debt."

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