Vietnam's
central bank wants to keep fluctuations in the dong to a minimum for the rest
of this year, seeing its present value against the dollar as realistic, a local
newspaper reported on Thursday.
"In the event that the State Bank sees
the necessity to adjust the exchange rate, we will adjust the rate by no more
than 1 percent between now and the year-end," Governor Nguyen Van Binh
told the Saigon Times Online newspaper
(www.thesaigontimes.vn).
"The State Bank may even allow the dong
to strengthen slightly," Binh said in an interview with the newspaper
after his promotion to the post last week by the National Assembly.
Vietnam devalued the dong in February by 8.5
percent against the dollar and the currency has found some stability since
then.
Binh said the devaluation had placed the
dong's real value "on a par" with the dollar. He did not elaborate.
He said signs of speculation had emerged in
the gold and interbank markets that have made the foreign exchange rate
fluctuate between 100 and 200 dong per dollar a day.
The dollar stood at around 20,824 dong on
Thursday compared with 20,890 in February 12, just after the devaluation.
"When there are problems with demand and
supply, the State Bank will intervene by selling the foreign currency," he
said.
"Our foreign exchange reserves at this
moment allow us to intervene at the necessary level," he added.
Binh gave no details on the level of foreign
exchange reserves, which are not published in Vietnam. The government said in
July it had added nearly $4 billion this year to reserves but did not specify
an overall level.
Binh said the central bank was drafting new
regulations on gold, and in future companies would need its authorization to
export the precious metal. At the moment they can export gold freely and firms
have shipped 40 tons recently, Binh said.
The central bank also regulates gold imports
tightly to help hold down Vietnam's big trade deficit.
On Tuesday, it said it had approved 5 tons of
gold imports and could double the quantity to stabilize the market as surging
prices for the metal have sparked a frenzy at gold dealers and jewelers.
Reuters
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment