>> Demand for foreign currency reveals need for stricter regulations >> New policies to ease disparity in foreign currency market >> Financial quandary: where to put your money? >> More reasonable policies for gold market needed Gold and foreign currency speculation has dropped after the government’s recent crackdown on unofficial trading. Gold speculation seems to be on the decline In light of this trend, realty and securities traders expected that some money would flow into these channels. It has turned out not to be the case. Nguyen Thi Ha from Giang Vo, Hanoi, is rather reticent to make new investment decisions even though she just earned VND2 billion (USD95,693) by selling a house worth nearly VND6 billion (USD287,081). In order to obey Government\'s regulations, Ha’s decided not to put her assets on gold or foreign currency. After careful consideration, she had to go back to real estate rather than securities as for investment. But it … [Read more...] about People turn their backs to gold and foreign currency
Where is foreign currency traded
Central bank requests control on foreign currency loans
It was estimated that outstanding foreign currency loans, mainly in US dollars, among banks, were significant at nearly 300 trillion VND (12.76 billion USD).(Source: cafef.vn) Hanoi (VNS/VNA) - Governor of the State Bank of Vietnam (SBV) Le Minh Hung 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. According to the SBV’s current regulations, commercial banks can still provide short-term loans in foreign currencies to export firms that need funds for production and have turnovers in foreign currency until the end of this year. After receiving such loans, the exporters must immediately sell the amount of foreign currency borrowed to the lenders to get VND, using the spot forex trading method, except in cases where the foreign currency will be used to make payments. It was estimated that outstanding foreign currency loans, mainly in USD, of banks, … [Read more...] about Central bank requests control on foreign currency loans
SBV requests control on foreign currency loans
Governor of the State Bank of Viet Nam (SBV) Le Minh Hung 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. It was estimated that outstanding foreign currency loans, mainly in US dollars, among banks, were significant at nearly VND300 trillion (US$12.76 billion). - Photo cafef.vn According to the SBV’s current regulations, commercial banks can still provide short-term loans in foreign currencies to export firms that need funds for production and have turnovers in foreign currency until the end of this year. After receiving such loans, the exporters must immediately sell the amount of foreign currency borrowed to the lenders to get Vietnamese dong, using the spot forex trading method, except in cases where the foreign currency will be used to make payments. It was estimated that outstanding foreign currency loans, mainly in US dollars, of … [Read more...] about SBV requests control on foreign currency loans
Overseas remittance reduces, Vietnam urged to attract foreign currencies from tourism
VietNamNet Bridge – The sharp decline of overseas remittance so far this year has raised a question if overseas remittance continues to play an important source for Vietnam’s foreign currency reserves. Where does overseas remittance go? In 2010, with 8.26 billion dollars, Vietnam was the 9th biggest overseas remittance receiver among developing economies. In 2011, Vietnam received 9 billion dollars in overseas remittance, which helped offset 92 percent of the trade balance.Overseas remittance has always been playing a very important role in the national economy development. Preliminary statistics show that at least 4.7 billion dollars has been poured into the real estate market. However, the sum of money remitted to Vietnam by overseas Vietnamese in the first six months of 2012 dropped sharply by 23 percent, signaling a “poor overseas remittance crop” in the whole year 2012. The decrease of 500 million dollars in overseas remittance to HCM City in the … [Read more...] about Overseas remittance reduces, Vietnam urged to attract foreign currencies from tourism
Central bank sets new rules for foreign currency lending
The Governor of the State Bank of Viet Nam (SBV) issued Circular No 29/2013/TT-NHNN on lending in foreign currency by credit institutions and foreign bank branches to resident borrowers on 6 December 2013. The Circular applies to (1) credit institutions and foreign bank branches permitted to conduct foreign exchange activities and lend in foreign currency to clients; and (2) residents borrowing from credit institutions and foreign bank branches. Lending in foreign currency by credit institutions and foreign bank branches Credit institutions and foreign bank branches (the "lending bank") may evaluate and decide to lend in foreign currency for the following demands: (1) Short-term, medium-term and long-term loans to make offshore payments for the import of goods and services when the borrower has sufficient foreign currency from production or business revenue to repay the loan. (2) Short-term loans to primary oil and petrol import enterprises obtaining the Ministry of Industry and … [Read more...] about Central bank sets new rules for foreign currency lending