Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests can post but they do have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.


We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."

Join Us for Dinar Discussions and More -- We Keep it REAL
HomeSearchMemberlistFAQLog inRegister
Help Us Drain the SWAMP in DINARLAND

REPORT TONY RENFROW for violating his Court Order to stay away from Dinar -

Judge's email: ksd_murguia_chambers@ksd.uscourts.gov
PHONE - 913-735-2340

DA's email: Scott.Rask@usdoj.gov
PHONE - 913-551-6730

Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Post new topic   Reply to topic
Share | 

 Vietnam - Central bank may adjust forex rate by early 2012: expert

Go down 
Elite Member
Elite Member

Posts : 1812
Join date : 2011-06-24

PostSubject: Vietnam - Central bank may adjust forex rate by early 2012: expert   Tue Nov 08, 2011 11:24 pm

November 8, 2011

Central bank may adjust forex rate by early 2012: expert

Vietnam’s central bank may adjust foreign exchange rate between the Vietnam dong and the US dollar by early 2012, mirroring its move in late 2010, said an expert.

Since the State Bank of Vietnam (SBV) has pledged to regulate the forex rate fluctuation at around 1 percent until the year-end, the market is forecast to see an adjustment by early next year, Le Xuan Nghia, vice chair of the National Financial Supervisory Committee, told Saigon Tiep Thi newspaper.

SBV last month repeatedly raised the interbank average forex rate by up to 0.85 percent, only 0.15 percent below the central bank's commitment.

However, if the central bank had adjusted the forex rate, the adjustment would not be so high as earlier this year, by 8.5 percent on February 11, Nghia said.

The country's international payment balance this year is predicted to be in surplus of $4-5 billion and the inflow of foreign direct investment (FDI) capital into Vietnam may rise 3-4 percent year on year, together with a rise of about 10 percent of inward remittances sent to Vietnam this year, he added.

Nghia also said that the most important task in macroeconomic stability from now till the end of this year is to control the forex rate.

During the last two months, the forex rate in the banking system sometimes touched nearly VND22,000 a US dollar, making the actual US dollar price in the banking system often higher than that on the free market by VND200-400 a US dollar.

Tai Hui, head of the macroeconomic research team in South East Asia of Standard Chartered Bank, has predicted that the official forex rate will be VND22,000 to the US dollar by the end of 2012.

Though the US dollar will depreciate against many regional currencies next year, it will appreciate against the Vietnam dong due to Vietnam’s current account deficit and draining forex reserve, he told Doanh Nhan newspaper.

To ease the pressure on the dong, the central bank should consider maintaining a stabilized high interest rate for the dong to protect investors and dong holders from the devaluating currency.

So, it must choose between offering high depositing rates or curbing inflation as fast as possible to win the hearts of investors and dong holders, he added.

Though the devaluation, in the long-term, may help scale down the trade gap, it will surely be a burden for businesses in the short-term.

As a result, if the central bank has to adjust the forex rate, it should consider a rate that meets the market expectation so that the domestic currency will be stabilized for a longer period of time, he said.


Back to top Go down
View user profile
Vietnam - Central bank may adjust forex rate by early 2012: expert
Back to top 
Page 1 of 1

Permissions in this forum:You can reply to topics in this forum
Post new topic   Reply to topicJump to: