ID :
47860
Fri, 02/27/2009 - 07:18
Auther :
Shortlink :
http://m.oananews.org//node/47860
The shortlink copeid
Exchange rate to stay stable, says State Bank Governor
Hanoi (VNA) - The Government of Vietnam has no plan to adjust the current foreign exchange rate, said State Bank of Vietnam Governor Nguyen Van Giau.
The central bank has the capacity to balance supply and demand for the US dollar,
he said.
Giau was responding to predictions the bank will appreciate the dollar and that
the greenback supply is low. Neither of which is correct, he said.
His public statement followed an unusual and sudden appreciation of the US
currency against the Vietnamese dong on the black market since last week, in
contrast to a stable dollar on the banking market.
The central bank listed the inter-bank rate market at around 16,973 VND per
dollar, while a dollar cost around 17,482 VND at commercial banks.
In contrast to report in the local media which said banks were thirsty for the
dollar and did not have enough dollars to sell, many bank leaders told the English
language daily Vietnam News they would definitely be able to meet the demand for
US dollars from enterprises and individual customers who needed capital to
manufacture, import or do business.
Vietcombank General Director Nguyen Phuoc Thanh said the bank's dollar
transactions were normal.
ACB Bank Deputy General Director Nguyen Thanh Toai also said the demand for the US
dollar was being adequately met by his institution. He said purchasing power in
the domestic market was not growing and demand from enterprises to pay for imports
remained limited.
This was in stark contrast to the message from the street where late last week a
single dollar cost as much as 18,000 VND.
Gold shops on Ha Trung and Tran Nhan Tong streets and some other shops across
Hanoi bought a single dollar at 17,750-17,800 VND and sold at 17,950 - 18,000
VND.
And since early this week, a steady stream of investor and speculators has flowed
into gold shops to buy the US dollar. which , in some cases, is reported to have
led to a short supply. On Feb. 25, a dollar cost 17,680 -17,720 VND, up 0,45
percent against the previous day or up 80 VND per dollar on the parallel market.
Also on Feb. 25, in the non-deliverable-forward (NDF) market - where investors
anticipate the value of currencies - the monthly cost of the dollar was expected
to rise to 18,365 VND within three months, up 865 VND against late last year or up
65 VND against Feb. 25.
The dollar is expected to cost 19,165 VND within six months and 20,065 VND by
February 2010.
Across several other public forum, people believed the Government decision,
announced nearly two weeks ago, to issue bonds denominated in the dollar to fund
key national projects and help offset the budget deficit, had added to the
dollar's popularity.
There was a general consensus that policy makers would allow the depreciation of
the domestic currency to make the bonds more attractive.-Enditem
The central bank has the capacity to balance supply and demand for the US dollar,
he said.
Giau was responding to predictions the bank will appreciate the dollar and that
the greenback supply is low. Neither of which is correct, he said.
His public statement followed an unusual and sudden appreciation of the US
currency against the Vietnamese dong on the black market since last week, in
contrast to a stable dollar on the banking market.
The central bank listed the inter-bank rate market at around 16,973 VND per
dollar, while a dollar cost around 17,482 VND at commercial banks.
In contrast to report in the local media which said banks were thirsty for the
dollar and did not have enough dollars to sell, many bank leaders told the English
language daily Vietnam News they would definitely be able to meet the demand for
US dollars from enterprises and individual customers who needed capital to
manufacture, import or do business.
Vietcombank General Director Nguyen Phuoc Thanh said the bank's dollar
transactions were normal.
ACB Bank Deputy General Director Nguyen Thanh Toai also said the demand for the US
dollar was being adequately met by his institution. He said purchasing power in
the domestic market was not growing and demand from enterprises to pay for imports
remained limited.
This was in stark contrast to the message from the street where late last week a
single dollar cost as much as 18,000 VND.
Gold shops on Ha Trung and Tran Nhan Tong streets and some other shops across
Hanoi bought a single dollar at 17,750-17,800 VND and sold at 17,950 - 18,000
VND.
And since early this week, a steady stream of investor and speculators has flowed
into gold shops to buy the US dollar. which , in some cases, is reported to have
led to a short supply. On Feb. 25, a dollar cost 17,680 -17,720 VND, up 0,45
percent against the previous day or up 80 VND per dollar on the parallel market.
Also on Feb. 25, in the non-deliverable-forward (NDF) market - where investors
anticipate the value of currencies - the monthly cost of the dollar was expected
to rise to 18,365 VND within three months, up 865 VND against late last year or up
65 VND against Feb. 25.
The dollar is expected to cost 19,165 VND within six months and 20,065 VND by
February 2010.
Across several other public forum, people believed the Government decision,
announced nearly two weeks ago, to issue bonds denominated in the dollar to fund
key national projects and help offset the budget deficit, had added to the
dollar's popularity.
There was a general consensus that policy makers would allow the depreciation of
the domestic currency to make the bonds more attractive.-Enditem
