State Bank warns local people not to rush for foreign currencies

The domestic banking system has sufficient foreign currencies to meet all the demands for foreign currencies of the economy, therefore local people should not rush to buy foreign currency due to psychological elements to avoid unnecessary losses, said an official of the State Bank of Vietnam on its website today.

The affirmation was made by Nguyen Ngoc Lan, deputy head of the Foreign Exchange Department at the State Bank of Vietnam today as price of US dollar on the black market has been pushed up by speculators to over VND 17,000 a dollar on news released early this morning by the Ministry of Finance to increase retail petrol prices.

In mid June 2008, the US dollar/Vietnam dong exchange rate on the domestic market rose sharply due to accumulative and psychological elements. With intervention tools by the State Bank of Vietnam, the market has returned to normal and the exchange rate is maintained around VND 16,600-16,700 a dollar.

This rate precisely reflects the supply and demand of the domestic market, said the State Bank of Vietnam.

ND

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