SBV strengthens local forex market management

Friday, Jul 19, 2013 16:07

SBV asks for further forex management in the local market. — Photo NDH Money

HA NOI (Biz Hub) — The State Bank of Vietnam (SBV) asked all of its branches and local credit institutions to strengthen their forex management in order to further stabilise local forex market.

Accordingly, all SBV branches must report their forex activities to the central bank prior to the end of August. The SBV also asked other credit institutions to strictly comply with forex regulations.

SBV's report on banking activities from July 8-12 said that US dollar transactions in the interbank market increased from the previous week while transactions of Vietnamese dong decreased.

According to the report, dong transactions reached over VND101.8 trillion (US$4.847 million) while US dollar transactions reached about $4.790 million. Compared to the first week of this month, interbank transactions in dong decreased by 23.6 per cent but the US dollar increased by 52 per cent.

With the exception of last week, US dollar trading between banks has remained high. US dollar transactions between banks jumped 2.5 percent during the last week of June.

The report also said that forex market began to stabilise after the SBV intervened and that the price of US dollar was trending down. Prior to the intervention, the US dollar was trading above the ceiling price of 21,246 per dollar, while selling for VND 22,000 on the free market.

On Friday, the US dollar was trading at its ceiling price of VND21,246 per dollar in most banks, while selling for VND21,500 per dollar on the free market.— VNS

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