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Forex shops shut down as Govt ban takes effect
Customers were unable to perform transactions at foreign exchange shops in Ha Noi on Mar. 7. The stoppage followed a Govern-ment's decision to temporarily stop currency transactions on the black market to curb inflation and stabilise the country's economy.
Customers were only able to sell or buy jelewry at the Bao Tin Minh Chau Jewelry shop on Tran Nhan Tong Street yesterday. Foreign currency transactions were temporarily shut down by the shop owner.
A series of foreign exchange shops on Ha Trung Street halted currency transactions on Mar. 7 Chinh Quang and Thinh Quang shops owners told Viet Nam News.
Banking specialists recommended curbing currency transactions at the foreign exchange shops.
Nguyen Tri Hieu, a finance specialist, said that the foreign exchange shops function as a long arm for commercial banks that had been operating in the currency market. Initially the service was used primarily by tourists, but recently small shops were beginning to have a larger impact on the country's currency market.
Although the amount of foreign currency transactions at small shops was not equal to the transactions that took place at commercial banks, the black market was beginning to cause major fluctuations on the country's foreign currency market.
Hieu further said money exchange dealers had become "market makers".
Most commercial banks complained that they had no US dollar reserves, while authorised dealers were cashed up with US dollars.
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