The foreign exchange situation as reflected in international payments and currency supply and demand was stable, the State Bank of Viet Nam said in a statement issued yesterday in response to rumours that the system was short of US dollars.

The rumours helped drive the dollar up 1.32 per cent against the dong between June 23 and July 2 on the black market to VND19,140 per dollar.

Meanwhile, the rate rose 0.57 per cent at commercial banks to VND19,100 per dollar during the same period.

“Viet Nam’s international payments are stable because of a surplus in capital and financial resources and stable long-term investment inflows to compensate for balance accounts,” said Nguyen Huu Nghia, head of forecasting and statistics for the State Bank of Viet Nam.

“People and enterprises should be very cautious against rumours to avoid risks or loss,” said Nghia.

The balance of payments reached a positive US$1.64 billion in the second quarter and $1.8 billion in the first quarter, he noted.

The central bank expected interest rates on loans in foreign currencies to remain stable through the rest of the year, since most major world economies were not tightening monetary policies. — VNS