Banks’ profits from foreign exchange trading dwindling One thing that stands out in many banks’ third quarter reports is the sharp drop in profits from foreign exchange trading activities.

Firms advised to use derivative instruments to minimise exchange rate risks

Experts suggested firms use more derivative instruments, such as futures and forward contracts, to minimise exchange rate risks when they can no longer borrow the US dollar from commercial banks, starting early this month.

Việt Nam enters home stretch in fight against dollarisation

From October 1 lenders including banks will not be allowed to provide medium- and long-term foreign currency loans to businesses to pay for imports. Many market observers said this is the State Bank of Việt Nam’s final step in its fight against dollarisation.

More steps to be taken to downsize foreign currency loans Commercial banks will no longer allow the provision of mid- and long-term foreign currency loans for offshore payments of imported goods and services from September 30 this year.

Foreign currency lending abolished – impact on enterprises Enterprises can borrow money in Vietnamese đồng (VNĐ) and then purchase foreign currency for payment when they need the capital to import input materials, say commercial banks.

Securities companies begin brokerage war as Govt scraps minimum rate Stockbrokers’ revenues are expected to fall sharply after a price war broke out among them in the wake of Circular No 128/2018/TT-BTC, which took effect last February.

Foreign currency lending extended into 2019

The State Bank of Việt Nam (SBV) has issued a circular to allow credit institutions and foreign bank branches to extend loans in foreign currencies to some borrowers in 2019, rather than cutting them off at the end of last year as planned.

Forex lending to continue next year

The State Bank of Việt Nam (SBV) is drafting a new circular on foreign currency lending, allowing credit institutions and foreign bank branches to extend loans to some borrowers in 2019 instead of cutting them off at the end of this year as planned.

SBV requests control on foreign currency loans

Governor of the State Bank of Việt Nam (SBV) Lê Minh Hưng has recently directed the entire banking industry to strictly control foreign currency lending to better minimise dollar speculation and fight against dollarisation in the economy.

Financial experts urge caution against dollar loans

Experts have warned enterprises to be more cautious with their US dollar loans amidst a significant rise in the lending and appreciation of the greenback.