The State Bank of Vietnam (SBV) plans to scrutinise foreign currency andgold trading in order to keep the forex rate stable in the last monthsof the year.
The central bank said on October 28it had tightened market management by restricting borrowing of foreigncurrencies, strictly controlling illegal forex trading and preventinggold smuggling.
It asked local branches and credit institutions to heighten forex and gold trading management.
Economists expected that foreign currency demand would not suddenlychange and the forex rate would remain stable at 1 percent. Changes inthe market were mainly due to psychology, they said.
The bank plans to analyse the macro-economy and international paymentbalance and take necessary measures to stabilise the market. If suddenchanges occur in the forex market, it will assess and provideinformation and solutions.
The SBV will also beready to support foreign exchange liquidity by creating policies oninterest rate and short-term liquidity in VND to stabilise the market.
Le Quang Trung, the Vietnam International Bank'sdeputy general director, said there would not be much pressure on theforex rate in the year-end months as macro-economic factors have helpedstabilise the monetary market.
He said the forexrate would be changed to the maximum level of one percentage point thisquarter if monetary policies were adjusted, adding that the forex wouldexceed the amplitude of 21,300-21,500 VND per US dollar.
The central bank said flexible monetary policies have helped curbinflation despite a surge in forex reserves and a large supply of VND inthe domestic market.-VNA
The central bank said on October 28it had tightened market management by restricting borrowing of foreigncurrencies, strictly controlling illegal forex trading and preventinggold smuggling.
It asked local branches and credit institutions to heighten forex and gold trading management.
Economists expected that foreign currency demand would not suddenlychange and the forex rate would remain stable at 1 percent. Changes inthe market were mainly due to psychology, they said.
The bank plans to analyse the macro-economy and international paymentbalance and take necessary measures to stabilise the market. If suddenchanges occur in the forex market, it will assess and provideinformation and solutions.
The SBV will also beready to support foreign exchange liquidity by creating policies oninterest rate and short-term liquidity in VND to stabilise the market.
Le Quang Trung, the Vietnam International Bank'sdeputy general director, said there would not be much pressure on theforex rate in the year-end months as macro-economic factors have helpedstabilise the monetary market.
He said the forexrate would be changed to the maximum level of one percentage point thisquarter if monetary policies were adjusted, adding that the forex wouldexceed the amplitude of 21,300-21,500 VND per US dollar.
The central bank said flexible monetary policies have helped curbinflation despite a surge in forex reserves and a large supply of VND inthe domestic market.-VNA
