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No more queuing for dollars
The dollar supply has become profuse, and on July 17, for the first time in four months, banks’ sale prices were lower than the ceiling level allowed by the State Bank of Vietnam.
The dollar price dropped sharply on the official (banks and businesses) and black markets. The official exchange rate announced by the State Bank of Vietnam was VND16,502/US$1.
At Vietcombank HCM City, the cash purchase price on July 17 in the afternoon was VND16,775/US$1, while the sale price was VND16,820/US$1.
Eximbank purchased at VND16,780/US$1 and sold at VND16,820/US$1.
The prices represented the decreases of VND8-9/US$1 compared to July 17 morning prices. The sale price on the black market was VND16,890/US$1.
This was the first time in four months that the sale prices offered by commercial banks were VND12/US$1 lower than the ceiling level.
Pham The Tuan, Deputy Director of the HCM City Branch of Vietcombank, said: “The supply is now very profuse. We can meet the demands of businesses and individuals without the support of the State Bank.”
Tuan said that the State Bank has been applying a suitable forex management policy. The speculation of dollars has been eliminated, which has helped improve supply and made the market healthier.
Dao Hong Chau, Deputy General Director of Eximbank, said that export companies, who earn dollars from export deals, are now not keeping dollars for speculation anymore. They understand they are at a disadvantage if they keep dollars. The companies are trying to sell dollars to get VND for production. Meanwhile, import companies, feeling secure with the profuse supply, are not rushing to register to purchase dollars in advance.
Many commercial banks offered to sell dollars on the interbank market at VND18,815-18,820/US$1 on July 17.
Vinamilk, a dairy producer, confirmed that it has been easier for the last 20 days to purchase foreign currencies. Truong Phu Chien, Chairman of Bibica, a confectionary producer, said that its need to purchase $100,000 has been satisfied by banks. Meanwhile, Pham Thi Viet Nga, General Director of Hau Giang Pharmaceutical Company, said that the company now can purchase dollars right when it needs to, it does not need to wait 2-3 weeks like it used to.
“The supply has not been very good, but banks have received an adequate supply from the State Bank,” said Ho Huu Hanh, Director of the HCM City Branch of the State Bank of Vietnam.
On July 5, the central bank put some $54mil into the market, and some days later it provided around $0.5bil more.
The State Bank did not only sell dollars to state-owned banks, but also to joint stock banks, which often support import-export activities.
In related news, the gold price dropped to VND19.21mil/tael yesterday, or VND130,000/tael lower than the previous day. The dollar price decreases have been making imports cheaper.
VNN
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