‘Dual’ forex rate situation appears again at banks

Together with increasing pressures on foreign currency demand by the end of this year caused by trade deficit, the forex market is said to be subject to pressure from too high credit growth in foreign currency, the local newswire Saigon Tiep Thi said on Friday October 14.
Vice Chairman of the National Financial Supervisory Commission, Le Xuan Nghia, said the difference in foreign currency lending in Vietnam at $7.5 billion (the total foreign currency loans are $30 billion while the total deposits in foreign currency are only $22.5 billion).

In addition, demand for foreign currency increased strongly due to the gold import demand. Gold traders imported five tons of gold in August and in last week they had to buy a counterpart amount of gold on accounts in foreign countries to offset the amount of gold sold in accordance with the goal to stabilize the market (about 10 tons of gold).

Thus, the “dual” forex rate situation appeared again in the banking system. Director of an export and import company said that his company was notified the US dollar selling price on October 13 at 21,450 dong each although this bank’s officially quoted forex rate was only 20,885 dong/US dollar, the local newspaper reported. – Source: Vietbiz24.com

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

Posted by VBN on Oct 15 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry