|
Cbank tightens dollar lending rules, more expected
Vietnam's central bank has asked lenders to restrict dollars loans to importers and certain exporters, in its latest step to stabilize the economy and curb inflation.
The State Bank of Vietnam has asked banks to ensure that only short-term funding is extended to exporters, while importers can avail of all types of loans, it said in a circular released on Friday. The rules will be effective from May 9.
Economists say that the central bank, after an initial bout of rate increases, is now focusing on the currency market, noting further monetary tightening may hurt liquidity of banks.
While the central bank has already introduced measures restricting dollar loans, the new steps show the central bank is determined to stabilize the foreign exchange market, said Tran Hai Yen, economist at Hanoi-based Bao Viet Securities Company.
"The forex market had been let loose in the past few years and the central bank is trying to regain control," she said.
The State Bank of Vietnam has, over the past two months, cut its target for credit growth to below 20 percent from an initial 23 percent and money supply growth to 15-16 percent from 21-24 percent. It has also clamped down on unofficial dollar trading while the government aims to cut spending to slow inflation.
Overt dollar trading in gold shops in Hanoi, which have operated as unofficial foreign exchange floors, has been frozen. The dong rose to 21,120/21,170 a dollar at a Hanoi major gold shop at 0217 GMT on Monday from 21,200/21,300 a week earlier.
Several banks have had to sell dollars for dong in the past few weeks to ease a liquidity crunch after the central bank raised dong refinance and discount rates, said a currency trader in a foreign bank.
The central bank has also cut dong cash injection via open market operations, he added.
"Dollar trading now depends on dong liquidity," he said.
The central bank may submit an "anti-dollarization" plan, which could include changing the dollar reserve requirements and monitoring gold trading, to the National Financial and Monetary Policies Advisory Council and the government next month, a government adviser has said.
Vietnam's total payment balance is expected to have a surplus of $2 billion this year versus a surplus of $3.07 billion last year and a deficit of $8.8 billion in 2009, State
Bank of Vietnam Governor Nguyen Van Giau told the parliament on Saturday.
tuoitrenews, Reuters
|
