VIETNAM - Enterprises Buys Dollars at VND21,600

by lexie Fri Nov 11, 2011 9:00 pm

November 11, 2011

Enterprises Buys Dollars at VND21,600

Local enterprises were forced to purchase dollars at as much as VND21,600, VND200/USD higher than in the free market to serve high import demand and settle their maturing dollar-denominated loans at year end, the local newspaper Nguoi Lao Dong reported.

Local lenders’ dollar supply mostly comes from the State Bank of Vietnam, local enterprises or remittances, the newspaper said. However, the central bank only provided commercial banks with sufficient amount to resell to enterprises for necessities imports. In addition, banks can barely attract dollar inflows from remittances as the majority of remittance receivers preferred selling dollars in the free market at higher prices. Domestic firms with dollar resources also refused to sell the foreign currency at banks’ quoted prices.

Therefore, local banks had to buy dollars at above listed prices to attract the foreign currency, resulting in much higher dollar prices for firms in need.

Besides, bank staffs were also reported to advise enterprises to buy dollars in the free market and sell to banks. These banks then sold dollars back to customers to legalize the amount. The move was to dodge the government’s regulation, specifying that local enterprises were not allowed to deposit non-source dollars into their accounts for import settlement.

http://www.vietfinancenews.com/2011/11/enterprises-buys-dollars-at-vnd21600.html#more

by 1alaskan Sat Nov 12, 2011 4:33 am

It finally broke the 21k price point

VIETNAM - Enterprises Buys Dollars at VND21,600

VIETNAM - Enterprises Buys Dollars at VND21,600

Re: VIETNAM - Enterprises Buys Dollars at VND21,600