Eximbank extends foreign exchange insurance

Vietnam Export Import Commercial Bank (Eximbank) will add VND3 trillion (US$181 million) to its exchange rate insurance, it said in a statement Friday.

The lender, Vietnam’s largest commercial joint stock bank, launched the service in July, using VND2 trillion ($121 million), aiming at importers and exporters.

The insurance covers the risk against an exchange loss on a business’ receivables resulting from a fluctuation of the exchange rate of the Vietnamese dong against foreign currencies. It is obtained through contracts in the forward market.

Eximbank, 15 percent owned by Sumitomo Mitsui Financial Group Inc., also said it reduced its yearly US dollars loan interest rate to 6.6 percent from 8.4 percent.

Thanhnien

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