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SBV outlines scheme to stabilise forex, gold rates

Update: October, 30/2013 - 08:55
Customers conduct a transaction at Agribank in Ha Noi. The central bank said on Monday it had tightened market management by restricting borrowing of foreign currencies, strictly controlling illegal forex trading and preventing gold smuggling. — VNS Photo Thai Ha
HA NOI (VNS)— The State Bank of Vietnam (SBV) plans to scrutinise foreign currency and gold trading in order to keep the forex rate stable in the last few months of the year.

The central bank said on Monday it had tightened market management by restricting borrowing of foreign currencies, strictly controlling illegal forex trading and preventing gold smuggling.

SBV asked local branches and credit institutions to heighten forex and gold trading management.

Economists expected that foreign currency demand would not suddenly change and the forex rate would remain stable at 1 per cent. Changes in the market were mainly due to psychology, they said.

SBV plans to analyse the macro-economy and international payment balance and take necessary measures to stabilise the market. If sudden changes occur in the forex market, it will assess these changes and provide information and solutions.

SBV will also be ready to support foreign exchange liquidity by creating policies on interest rate and short-term liquidity in dong to stabilise the market.

Le Quang Trung, the Vietnam International Bank's deputy general director, said there would not be much pressure on the forex rate in the year-end months as macro-economics factors have helped stabilise the monetary market.

Trung said the forex rate would be changed to the maximum level of one percentage point this quarter if monetary policies were adjusted.

He added that the forex would exceed the amplitude of VND21,300-21,500 per US dollar.

The central bank said flexible monetary policies have helped curb inflation despite a surge in foreign reserves and a large supply of dong in the domestic market. — VNS


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