Reserve Bank of New Zealand visit
Mr Komira, Mr Tong Deun, and Mr Du at the Reserve bank.
The ELTO visit to the Reserve Bank of New Zealand (RBNZ) was an important workplace visit for three people in Intake 31 who work in finance in their countries: Mr Thong Deun Khamany from the Laotian Ministry of Public Works and Transport, Mr Komira Sieng (Ministry of Commerce, Cambodia) and Mr Trong Du Nguyen, State Bank of Vietnam.
The Reserve Bank representatives were Mr. Richard Sullivan and Mr. Hamish Pepper who work as advisers for Economics and Financial Market Departments respectively.
During the visit we had a brief an introduction from them on the Reserve Bank’s roles and duties. We had questions for them and received very clear answers regarding financial development and banking systems especially the clearly different responsibilities of the Reserve Bank and commercial Banks. We appreciated them for giving us a lot of information and experiences with some documentation.
Mr Nguyen Trong Du from the State Bank of Vietnam outlines his understanding of the differences between the RBNZ and the State Bank of Vietnam (SBV):
“Both the RBNZ and the SBV are central banks and are owned 100 per cent by the Government. They operate the monetary policy to maintain overall price stability and also promote the maintenance of a sound and efficient financial system, issue domestic currency and provide settlement services to the Government and financial institutions.
The RBNZ is independent of the new Zealand Government, but the SBV is under the control of the Vietnamese Government. The RBNZ monetary policy is only to maintain price stability and the SBV conducts monetary policy to achieve some goals including: maintaining price stability, supporting economic growth and keeping a fixed exchange rate. These goals often conflict, so it is very difficult to achieve them at the same time.
The RBNZ has a headquarters in Wellington and an office in Auckland city, but the SBV has a headquarters in Hanoi Capital and 61 branches in 61 provinces.
In my opinion, the SBV can learn from the RBNZ to reform its organizational structure, functions and missions.”
