HANOI, Oct.1 (Xinhua) -- Vietnamese State Bank Governor Nguyen Van Giau said on Tuesday that the crisis on Wall Street would not cause a domino effect on Vietnam's financial sector as the liquidity of local banks and the foreign currency reserve were at secure levels, the Vietnam News reported on Wednesday.

    The governor said Tuesday saw a liquidity surplus of about 40 trillion Vietnamese Dong (about 2.35 billion U.S. dollars) on the monetary market, while it had swayed around 30 to 35 trillion (1.76 billion to 2.06 billion dollars) on a daily basis in recent days.

    The country's foreign currency reserve continued to increase by 1.6 billion U.S. dollars compared to the figure in early 2007, and 82 percent of that reserve was deposited at the U.S., British and French central banks and other international financial institutions, Giau said.

    The governor added that the remainder of the reserve was being invested by highly-trusted commercial banks.

    He said the State Bank would continue to practice its tightened monetary policy, but remained flexible while closely monitoring the global financial market and domestic market.

    He also said the State Bank would interfere when necessary to protect the economy and the financial system's liquidity.