Vietnam central bank reinforces administrative measures in decree no.95

The State Bank of Vietnam, the country’s central bank, sent official dispatches, requesting credit institutions to strictly implement Decree No. 95 on gold and foreign exchange trading and asked support from four related Ministries on Oct 25.

The central bank asked credit institutions and branches of foreign banks to strictly follow the new regulations on foreign exchange control and gold trading management, actively detect and report violations.

The SBV also requested four ministries: Ministry of Industry and Trade, Ministry of Finance, Ministry of Defense and Ministry of Public Security to take necessary measures to detect and strictly deal with violations of the new decree.

Recently, the government issued new a Decree No.95/2011/ND-CP to set higher fines and added new punishments for those who violated foreign exchange and gold trading regulations, stipulating that people caught illegally trading foreign exchange or gold could now be fined as much as VND500 million, instead of VND70 million. The new policy is expected to help stabilize the local forex and gold market as well as reducing dollarization.

Dollar prices in the free market immediately fell after the central banks’ moves. At a gold shop on Ha Trung Street, the center of free forex and gold markets in Hanoi, quoted dollar exchange rate at VND21,660-VND21,700 for bid and ask, respectively this morning, down VND 80 for bid and VND100 for ask from yesterday.

Analysts expected dollar exchange rates to hover around VND22,000 through the year-end and the forex market to fluctuate within a limited range.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Oct 26 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