|
Foreign exchange market steadies, dollar price falls
The supply of the greenback in the market has increased strongly, pulling dollar prices down after a series of measures were issued by the State Bank of Viet Nam (SBV) to stabilise the foreign-exchange market.
The average USD/VND exchange rate on the interbank market last Friday was VND20,718, meaning that banks could sell the greenback at VND21,339, given the permissible trading band of three per cent.
However, most banks, including Vietcombank, Eximbank and Dong A Bank, quoted the dollar selling price at VND20,880 in the morning, much lower than the ceiling price.
Previously, with higher prices on the black market, the dollar quoted at banks had hit the ceiling price until the SBV recently took measures to wipe out speculation on the greenback.
Dollar buying and selling prices at commercial banks continued to fall by between VND80 and VND90 on Friday afternoon when many export enterprises and individual customers sold their dollar to banks.
Eximbank, for instance, quoted the dollar selling price at VND20,800, a decrease of VND80 compared to the selling price in the morning. It bought one dollar at VND20,720-20,730.
The dollar price in the open market also fell following the official exchange rate. The exchange rate in the unofficial market on Friday was at VND20,700 for buying and VND20,820 for selling.
The forex rate on the interbank market last Saturday fell to VND20,708. Accordingly, the selling price at Eximbank and Vietcombank was VND20,780 and VND20,830, respectively.
Commercial banks said the improvement in dollar supply had caused the dollar-dong exchange rate to fall.
SBV's regulations on raising the compulsory reserve ratio for foreign currency deposits at commercial banks and capping the interest rate on dollar deposits at three per cent per year have strongly affected the psychology of the dollar holders.
Currently, the deposit interest rate for the dong stands at 14 per cent per year, nearly five times higher than the deposit interest rate for the greenback. Many individual depositors on the dollar have withdrawn their dollar to shift to Vietnamese dong deposits.
Export enterprises have also increased selling their dollar to banks.
Commercial banks reported that the amount of dollar sold to them in recent days was higher than before.
Eximbank, for instance, said the amount of dollar sold to them increased by 30 per cent compared to previous times.
Contrary to the official market, trade on the unofficial market had been quiet these days since authorities had strengthened checks of illegal dollar trading.
With the high dollar supply, bankers said they can meet demand for dollar from individuals and institutional customers.
Tran Hoang Ngan, a member of the National Advisory Council for Financial and Monetary Policy, said in the current situation, SBV should enhance purchases of the greenback to increase foreign currency reserve and, at the same time, support commercial banks in raising their liquidity in dong.
The move is expected to cause banks to slash interest rates on the dong, and enterprises therefore will have opportunities to get loans at lower interest rates, he said.
vietnamnews
|
