Saturday, August 13, 2011

Prevent idle cash to invest in gold

Prevent idle cash to invest in gold
Association of financial investors in Vietnam (VAFI) has written to the Minister of 707/HHDTTC Finance and State Bank. As recommended by the VAFI, Ministry of Finance and State Bank of Vietnam (SBV) should have mechanisms and policies to further attract the idle money in the population into the banking system as well as mechanisms to prevent idle cash free investment in the channel is not good for the economy as gold, foreign currencies, real estate ... so that can lower interest rates to 12% / year. Also, should redefine the way the annual budget deficit towards the target should not see the national debt / GDP by approximately 50% of safety margin.

Investing in gold is absolutely no benefit to the economy

As proposed by VAFI tasks of the central bank is lending to about 12% / year because if you do this it has done well as many important macro indicators such as GDP growth, reduced budget deficit, trade deficit, foreign exchange market stability, control inflation, stock market development, accelerating reform of state enterprises. There is a real interest rate is 12% existed in the period 2003-2007.

Specifically, in 2006, 2007, interest rates have had the time down to the 8% -10% / year. To be able to pull interest rates of 12% / year, the central bank must have policies and mechanisms to further attract the idle money in the population into the banking system and securities markets, and have restrict the idle money to invest in the channel is not good for the economy as foreign investment gold, real estate.
pegscafe.com Copyright @ 2011 - Theme by NanLimo - Thanks to Google