SBV intervenes in forex marketThe Saigon Times Daily A bank clerk is counting U.S. banknotes in this file photo. The central bank has intervened in the forex market by selling U.S. dollars to commercial banks - PHOTO: THANH HOA HCMC – The State Bank of Vietnam has officially intervened in the forex market by selling foreign currencies, especially U.S. dollars, to meet the demand of local commercial banks and stabilize the exchange rate, local media reported, citing an SBV representative. The representative said that the central bank has sold a small amount of U.S. dollars at VND23,050 each, or VND30-60 lower than the prices at commercial banks. In addition, the central bank today, July 17, slightly strengthened the local currency by reducing the reference exchange rate to VND22,643 per dollar, the second straight day the exchange rate has been revised down. As a result, the selling and buying prices of U.S. dollars quoted by commercial banks have softened to VND23,100 … [Read more...] about SBV intervenes in forex market
Currency trading forex
Experts concerned over foreign-currency credit surge
Experts concerned over foreign-currency credit surgeThe Saigon Times Daily Corporate borrowers have grown dependant on foreign-currency credits - PHOTO: TL HCMC – Economists have warned of forex risks as corporate borrowers have grown dependant on foreign-currency credits, resulting in a strong rise in foreign-currency outstanding loans since early this year, according to Lao Dong newspaper. Credit up, deposit down The financial reports of local banks show that deposits in foreign currencies, mostly in U.S. dollar, declined sharply in the first quarter, while lending in these currencies shot up. At the Bank for Investment and Development of Vietnam (BIDV), deposits in U.S. dollar fell 6.05%, while credit leapt 4.01% against early this year to more than VND96.7 trillion. Meanwhile, the Asia Commercial Bank saw its dollar deposits down 8.99%, while lending jumped by 8.19% to VND9.5 trillion. Some other banks reported the same situation, including Military Bank … [Read more...] about Experts concerned over foreign-currency credit surge
Stocks tumble, bonds and yen gain as trade war fears drive rush to safety
A pedestrian walks past at an electronics stock indicator, including a share prices in Tokyo. (Photo: AFP/Kazuhiro Nogi) Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period. Investors fear that the US measures could escalate into a trade war, with potentially dire consequences for the global economy. Beijing urged the United States on Friday to "pull back from the brink". "China doesn't hope to be in a trade war, but is not afraid of engaging in one," the Chinese commerce ministry said in a statement. China unveiled its own plans on Friday to impose tariffs on up to US$3 billion of US imports in retaliation against US tariffs on Chinese steel and aluminium products. MSCI broadest index of Asia-Pacific shares outside Japan fell 2.2 per cent as stocks across the region dropped. Shanghai shares were down 3.3 per cent. "The economic impact on both China and the US … [Read more...] about Stocks tumble, bonds and yen gain as trade war fears drive rush to safety
Forex rate pressure remains high: NA committee
Forex rate pressure remains high: NA committeeBy Tu Hoang - The Saigon Times DailyHANOI – The pressure on the foreign exchange rate remained strong and has tended to increase further lately, according to a research report of the National Assembly (NA) Economic Committee.The report conducted by a team headed by Chairman Nguyen Van Giau of the economic committee gave comments on the trend of Vietnam dong depreciating against the U.S. dollar in the upcoming time, including early 2012.The pressure was attributed to different factors, including inflation, trade deficit, foreign currency credit growth and money speculation.The research remarked that in the final months of 2011, the forex market witnessed a rapid rise in demand for foreign currencies, dominantly the U.S. dollar. The foreign money was in increasing need to repay matured loans, or to import goods, especially gold, for the year-end season given the price gap between local and global gold.Also, the rising demand for foreign … [Read more...] about Forex rate pressure remains high: NA committee
Vietnam’s forex reserves forecast to hit US$48 billion by end-2017
The State Bank of Vietnam (SBV) has bought in another US$1.5 billion worth of hard currencies over the past month. Previously, SBV Governor Le Minh Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by US$7 billion in 11 months to bring the sum to a record high of US$45 billion. The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. It is estimated that the daily reference VND / USD exchange rate listed by the central bank in the first nine months increased by 1.4 per cent against earlier this year, while the rate in the unofficial market declined by 1.5-1.7 per cent. The central bank has bought in another US$1.5 billion worth of hard currencies over the past month. According to the central bank, the liquidity of the domestic foreign exchange market was good and met the demands of local organizations and individuals. It is noteworthy that … [Read more...] about Vietnam’s forex reserves forecast to hit US$48 billion by end-2017
Central bank extends forex loan policy
According to Circular 18/2017/TT-NHNN issued on Wednesday, which will take effect from January 1 to December 31, 2018, commercial banks can provide short-term loans in foreign currencies to export firms that need funds for production and have turnovers in foreign currencies. After receiving such loans, the exporters must immediately sell the amount of foreign currency borrowed to the lending institutions, using the spot forex trading method, except in cases where the foreign currency will be used to make payments.According to the central bank, it decided to extend the policy to help local exporters increase their competitiveness and boost exports since their businesses and production still face difficulties. This is also among the Government’s incentive policies aimed at supporting and developing local enterprises until 2020, which was approved in Decree 35/NQ-CP, issued in May 2016.Thanks to this policy, exporters have the opportunity to borrow foreign currencies at low interest … [Read more...] about Central bank extends forex loan policy
Vietnam’s forex reserves soar to record-setting US$48 billion
It meant that the SBV has brought in another US$3 billion worth of hard currencies over the past month. Previously, Governor Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by US$7 billion in 11 months to bring the sum to a record high of US$45 billion. The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. A few years ago, the exchange rate usually fluctuated widely towards the year-end due to seasonal factors. In particular, the USD/VND rate has undergone little change, although the US Federal Reserve raised its benchmark interest rates by 0.25 percentage points for the third time, effective December 14. As the US rate increase was well-anticipated, the local forex market did not react negatively to the Fed’s rate announcement. The USD/VND rates were kept almost unchanged on December 15, a day following the rate hike. Across … [Read more...] about Vietnam’s forex reserves soar to record-setting US$48 billion
Vietnam’s forex reserves soar to record-setting 48 billion USD
Foreign curency exchange at the Ho Chi Minh City Development Bank (Photo: VNA)Hanoi (VNS/VNA) - Vietnam’s foreign currency reserves hit approximate 48 billion USD thanks to the country’s stable macroeconomic conditions andstrong influx of exports, foreign direct investment (FDI) and remittance,according to State Bank of Vietnam (SBV)’s Governor Le Minh Hung.It meant that the SBV has brought in another 3 billion USD worthof hard currencies over the past month.Previously, Governor Hung told National Assembly deputies on November16 during a plenary session that the bank had increased its buffer fund by7 billion USD in 11 months to bring the sum to a record high of 45 billion USD.The rise was reported in the context of the foreign exchange rate in thedomestic market being relatively stable. A few years ago, the exchange rateusually fluctuated widely towards the year-end due to seasonal factors.In particular, the USD/VND rate has undergone little … [Read more...] about Vietnam’s forex reserves soar to record-setting 48 billion USD
Businesses grapple with forex rate volatility
Businesses grapple with forex rate volatilityBy Thai Hang - The Saigon Times Daily The dollar price on the unofficial market in HCMC on Monday afternoon was VND20,400 for buying and VND20,450 for selling, and the respective prices in Hanoi were VND20,430 and VND20,470. Those prices were up VND50 from last Friday and VND430 from 10 days ago. In industries where 70% to 80% of materials are imported, the strengthening dollar is hitting them hard. Bui Quoc Cuong, director of Long Chau Group, an animal feed manufacturer in Dong Nai Province, said import prices of materials had edged up 30% in the past two or three months.“For palm oil, coco oil, soya beans and other materials, their import prices are now 30% higher than in August but supply still falls short,” he said. Cuong said he also paid an extra VND1,000 to buy each dollar on the black market, which was trading the greenback at VND20,500 per dollar. His company spends several million dollars on material imports. When the … [Read more...] about Businesses grapple with forex rate volatility
VN’s forex reserves soar to record-setting $48b
Viet Nam’s foreign currency reserves hit approximate US$48 billion thanks to the country’s stable macroeconomic conditions and strong influx of exports, foreign direct investment (FDI) and remittance, according to State Bank of Viet Nam (SBV)’s Governor Le Minh Hung. Foreign curency exchange at the Ho Chi Minh City Development Bank.It meant that the SBV has brought in another $3 billion worth of hard currencies over the past month.Previously, Governor Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by $7 billion in 11 months to bring the sum to a record high of $45 billion.The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. A few years ago, the exchange rate usually fluctuated widely towards the year-end due to seasonal factors.In particular, the USD/VND rate has undergone little change, although the US Federal Reserve raised its … [Read more...] about VN’s forex reserves soar to record-setting $48b