Balance of payments set for small surplus in 2011

Vietnam’s balance of payment will likely run a surplus of $1 billion in 2011, said Le Xuan Nghia, vice Chair of Vietnam National Financial Supervisory Commission, noting that the forecast would be probably precise.

This year, the gap between domestic and global prices have been narrowed to almost flat, discouraging illegal gold importing, Nghia said.

Earlier, Vietnam’s forex reserves lost $9 billion in 2009 and $3 billion in 2010, mostly caused by high forecasting error due to illegal gold importing with huge volume, he added.

The economist expected that balance of payment surplus will help ease balance of payment pressures on dollar exchange rates, yet concerning that trade deficit is widening due to a decline in overseas remittance and hardly increase in foreign capital inflows.

Nghia also warned that Vietnam should stay alert as current supply for dollars is mounting (but actually not) as enterprises have sold dollars for the dong, however demand for dollars to repay loans would surge at the end of the year peak season. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jun 25 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