Business
Vietnam c.bank sells US$2 billion to stabilize market
The SBV`s current reserve fund of nearly US$64 billion is expected to ease pressure on foreign currency supply in the market, according to a commercial bank`s representative..
Over the last week, the State Bank of Vietnam (SBV) has sold nearly US$2 billion to commercial banks in order to increase supply in the foreign exchange market, of which the amount sold in July 20 alone amounted to US$300 million, an SBV's official told the Saigontimes.
For the last two years, the SBV has been a net buyer of foreign currency, which has now come to the point of selling foreign currency to commercial banks and increasing supply for the market, informed an SBV representative.
At present, the reference selling price of the dollar is hovering around VND23,050 a dollar, while the inter-bank exchange rate is around VND23,050.
According to an unnamed official at a commercial bank, banks with a negative foreign exchange balance are qualified to purchase additional hard currency from the SBV.
The SBV's current reserve fund of nearly US$64 billion will play a vital part to ease pressure on foreign currency supply, he added.
In the long term, there remain growing uncertainties in the world market, stated Ngo Dang Khoa, head of market trading at HSBC Vietnam.
In order to improve efficiency in corporate governance, cash flow and risk managements, enterprises are requested to be proactive in avoiding interest rate and foreign exchange risks, Khoa continued.
The SBV in the meantime has been implementing the monetary policy flexibly and stabilizing macro-economy, with the aim of meeting enterprises' demand for forex in a timely manner.
With regard to the impact of foreign exchange rate on enterprises, a report recently released by VNDirect Securities stated an increase in the USD selling price will place more burden on enterprises having loans heavily in USD and of trade deficits.
Meanwhile, a stronger dollar will benefit enterprises with net export value, especially in fields of fishery, textile and garment, rubber production, and software export.
On July 20, the USD selling price at Vietcombank stood at VND23,095, the highest in a month, while the selling and buying prices in the free market jumped to VND23,290 and VND23,340, the highest-ever recorded.
Compared to the end of 2017, the USDVND exchange rate quoted by commercial banks and in the free market have increased by 1.6% and 2.6%, respectively.
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At present, the reference selling price of the dollar is hovering around VND23,050 a dollar, while the inter-bank exchange rate is around VND23,050.
According to an unnamed official at a commercial bank, banks with a negative foreign exchange balance are qualified to purchase additional hard currency from the SBV.
The SBV's current reserve fund of nearly US$64 billion will play a vital part to ease pressure on foreign currency supply, he added.
In the long term, there remain growing uncertainties in the world market, stated Ngo Dang Khoa, head of market trading at HSBC Vietnam.
In order to improve efficiency in corporate governance, cash flow and risk managements, enterprises are requested to be proactive in avoiding interest rate and foreign exchange risks, Khoa continued.
The SBV in the meantime has been implementing the monetary policy flexibly and stabilizing macro-economy, with the aim of meeting enterprises' demand for forex in a timely manner.
With regard to the impact of foreign exchange rate on enterprises, a report recently released by VNDirect Securities stated an increase in the USD selling price will place more burden on enterprises having loans heavily in USD and of trade deficits.
Meanwhile, a stronger dollar will benefit enterprises with net export value, especially in fields of fishery, textile and garment, rubber production, and software export.
On July 20, the USD selling price at Vietcombank stood at VND23,095, the highest in a month, while the selling and buying prices in the free market jumped to VND23,290 and VND23,340, the highest-ever recorded.
Compared to the end of 2017, the USDVND exchange rate quoted by commercial banks and in the free market have increased by 1.6% and 2.6%, respectively.
