VIETNAM - Central Bank Quotes Dollar At VND20,803

by lexie Mon Nov 21, 2011 12:38 pm

November 21, 2011

Central Bank Quotes Dollar At VND20,803

Vietnam's central bank set the U.S. dollar's exchange rate at VND20,803 Monday, unchanged from Friday.

Foreign-exchange dealers said official rates at commercial banks were left unchanged as part of measures by the central bank to maintain stability in the local currency market ahead of a government plan to restructure the banking system.

"Still, many banks are in reality quoting the same rates as traders in the free market," said a Hanoi-based dealer at a commercial bank.

Demand for the U.S. unit came mainly from companies seeking to buy the greenback to clear their debts before the end of the year, the dealer noted.

"Dollar demand from importers isn't very strong because sales of imported goods are relatively slow, partly as local consumption is weak as a result of shrinking incomes caused by the financial crisis," the dealer added.

According to dealers with gold shops at Ben Thanh Market, a foreign-exchange trading center in Ho Chi Minh city, dollar rates fell slightly Monday, in line with lower gold prices in the global market which fell to $1,715 a troy ounce from Friday's $1,720 a troy ounce. Local dealers often use gold prices to calculate dollar rates.

They predicted the dollar would move in a VND21,300-VND21,400 band this week. (Dow Jones)

http://www.vietfinancenews.com/2011/11/nov-21-central-bank-quotes-dollar-at.html