Vietnam’s Dong rises the most in five weeks on demand for cash

Vietnam’s dong gained the most in five weeks on speculation banks need more cash as the end of the year approaches. The five-year bonds were little unchanged.
The dong rose 0.2 percent to 20,998 per dollar as of 5:00 p.m. in Hanoi, the most since Dec. 13, according to data compiled by Bloomberg. The central bank set the reference rate at 20,828 per dollar, its website showed. The currency is allowed to trade as much as 1 percent either side of the official rate.

“Banks are in need of cash as residents withdraw deposits ahead of Lunar New Year,” Nguyen Duy Phong, a Ho Chi Minh City- based analyst at Viet Capital Securities, said in a phone interview.

The Southeast Asian nation will celebrate the Lunar New Year, also known as the Tet festival, next week, from Jan. 23 to Jan. 27.

Yields (GGVN5YR) on five-year debt were little changed at 12.46 percent, according to daily fixings from banks compiled by Bloomberg.
Bloomberg

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jan 18 2012. 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