Foreign currency deposits at banks grow 0.07pct in Sept.

As of Sept. 29, foreign currency deposits (mainly US dollars) of the banking system grew 0.07% (equivalent to US$17 million) compared to the end of August, VietBiz24.com quoted the data of the State Bank of Vietnam (SBV) on Thursday.
Outstanding loans in foreign currencies, mainly US dollars decreased US$792 million, equivalent to 2.71% compared with the end of August.

Notably, foreign currency deposits of banks at the State Bank of Vietnam increased strongly in Sept., showing that the foreign currency liquidity of the banking system continued to be guaranteed.

As of Sept. 29, total foreign currency deposits of banks at the central bank rose 45.1% compared to August, equivalent to an additional increase of US$586 million.

According to SBV, the overall balance of payments gained a surplus of US$5 billion along with foreign exchange reserves being strengthened and foreign currency liquidity of the banking system guaranteed over the past months is an important basis for stabilising the dong/dollar exchange rate and dollar interest rates on the domestic market in the remaining months of 2011.

The State Bank confirmed that it will closely work with commercial banks to continue to sell US dollars to intervene the foreign exchange market, fully meeting the dollar needs of the national economy, and stabilizing the dong/dollar exchange rate until the end of this year with a trading band of less than 1%. – Source: Vietbiz24.com

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

Posted by VBN on Oct 7 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