Black market for USD rebounds despite ban

The unofficial foreign currency trade in Hanoi has found ways to adapt to recent Government enforcement measures.

Gold shops on Ha Trung Street, known as a centre of foreign currency exchange in Hanoi, refused to answer phone calls about exchanging money. However, they were willing to provide services to individuals directly at their shops on March 31.

The owner of one gold shop, when asked about the possibility of buying USD, answered with a question about the volume of the exchange. The rate on that day was set at VND21,150/USD.

Another gold shop called Quoc Trinh also resumed operations, with fewer staff than before the Government’s regulations, but were offering similar exchange rates.

The unofficial exchange rates are not very far from the official ones. On March 31, commercial banks applied rates of between VND20,870, and VND20,865, depending on whether it was buying or selling.

In the meanwhile, the State Bank of Vietnam (SBV), the country’s central bank, plans to issue a requirement next week to request state-owned enterprises to sell all their term deposits, estimated at a total value of USD376 million, to commercial banks.

The move is expected to discourage currency speculation.

However, some experts are worried that the move may adversely affect money supply and heighten fears of inflation. – Dantri

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial