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Central Bank Quotes Dollar At VND20,748

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Post by lexie Mon Oct 24, 2011 1:15 pm

October 24, 2011

Central Bank Quotes Dollar At VND20,748


Vietnam's central bank set the U.S. dollar's exchange rate at VND20,748 Monday, unchanged from Friday.

Hanoi currency dealers said the central bank has kept its rate unchanged after raising it by 0.58% so far this month, though that is hardly enough to keep pace with the strong demand for dollars.


"The central bank may hope that a new regulation on punishment of illegal trading activities of foreign currencies, which was issued by the government over the weekend, will help keep the price of the greenback from continuing to move up," said a dealer with the Hanoi-based Vietnam Gold & Jewelry Traders Association.


Prime Minister Nguyen Tan Dung late Friday issued a new decree to raise the maximum fine on illegal trading of foreign currencies to VND500 million from VND70 million, in a move dealers say are part of increased efforts to eliminate transactions of dollars in the local free market.


"The government measures are expected to temporarily keep the U.S. dollar from going up, but the dollar price will rise if corporate demand remains strong and trade deficits continue expanding," the dealer added. He noted that dollar rose as high as VND21,900 over the weekend in Hanoi.


Dealers forecast the dollar to move in a VND21,500-VND21,700 range this week in the free market. (Wall Street Journal)



http://www.vietfinancenews.com/2011/10/central-bank-quotes-dollar-at-vnd20748.html#more

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