Banks start net purchases of foreign currency

Foreign currency status of the whole banking system continues to be positive and trading turnover of foreign currency on the interbank market and with customers is increasing.
According to the report on banking operation in the week between September 10 and 16, the State Bank of Vietnam said that the foreign exchange market continues to have positive evolutions.

Banks have started net purchase of foreign currency from customers and the foreign currency liquidity of the entire system has been improved.

The listed forex rate at commercial banks is commonly at around 20,830-20,834 dong/US dollar.

According to the local newspaper Thoi Bao Kinh Te Saigon (Saigon Economic Times) on September 17, the improved foreign currency liquidity of banks has made foreign currency credit standstill and the balance between deposit and lending of foreign currency as of the end of August was about $3 billion and it is forecasted to reach $5 billion by the end of this year.

As per the report of the regular cabinet meeting in August, as of August 19, foreign currency credit growth was 23.91% from early this year and it posted a fall of 0.82% compared to the previous month.

The local newspaper Thoi Bao Kinh Te Vietnam (Vietnam Economic Times) cited the central bank’s governor Nguyen Van Binh as saying that till September 7, 2011, the foreign currency credit growth of the whole banking system was about 25% and it is predicted to reach 30% by the year-end.

Source: Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam forex market