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Tag Archive for ‘Depreciate’

Vietnam interbank rate skyrockets

Several banks majority held by the State chased up the inter-bank interest rate by around one percentage points on Thursday, pushing the overnight rate on the market to some 5%-6% a year compared to a mere 1% a fortnight ago. Banks lent to one another at 5%-6% for overnight and one-week terms, 6% to 6.5% for terms of two to three weeks, and up to 7.5% for one-month terms, said analysts of the Bank for Investment and Development of Vietnam (BIDV). BIDV experts said the inter-bank market had become more bustling since early this…

Vietnam’s interest rates lower, forex rate under pressure

Ongoing interest rate cuts are thought to put a hard pressure on the dong/US dollar exchange rate. However, economists do not think that the dong would depreciate sharply this year. Exchange rate under pressure According to Pham Hong Hai, Deputy General Director of HSBC Vietnam, when the interest rates go down significantly, this would generate influences on the dong/dollar exchange rate. If the inflation rate decreases sharply as expected by the government after a series of measures is applied to curb inflation, and if government implements its plan to slash bank loan interest rates to help businesses resume…

Dong/dollar exchange rate fluctuates in short term, but stabilizes in long term

The dollar sale prices quoted by commercial banks are marching toward the 21,000 dong per dollar threshold. However, experts believe that no heavy price fluctuations would be seen in 2012. Commercial banks have all raised the buy and sell prices in recent days. After the price fluctuation on March 20, 2012, the dong/dollar exchange rate had been hovering around 20,870 dong per dollar. The exchange rate stabilization was obtained in the context of the continued dong interest rate decreases. To date, the State Bank of Vietnam has three times cut down key interest rates. However, the succession of peaceful days of the greenback ended…

HSBC Projects Vietnam to Cut Key Rates by 2% in Q3

The Hongkong and Shanghai Banking Corporation (HSBC) forecasted that the State Bank of Vietnam (SBV) will likely cut key rates by 1% within this month and by another 2% in the third quarter of the year. The central bank has recently cut rates for the third time in just two months; a move to boost weaker-than-expected economic expansion. Faster-than-expected decline in inflation prompt the monetary authority to slash rates faster, experts commented. Successful implementation of tightening measures in 2011 has slowed inflation significantly with inflationary pressure easing from its peak of 23% in last August. Yet, economic…

EU urges direct bank aid in boost for Spain

The European Commission advocated direct aid from a euro zone rescue fund to recapitalize distressed banks in a move that could eventually help Spain , the latest front in Europe’s debt wars, overcome a worsening banking crisis. Spanish government borrowing costs earlier lurched higher and the Madrid stock market hit a nine-year low on Wednesday as investors rattled by fears about its financial sector fled to the relative haven of German bonds. In a major economic policy document, the Commission said the vicious circle of weak banks and heavily indebted states lending to each other must be broken. While the…

Exchange rates stay stable

Exchange rates are showing stable development in Vietnam, says financial and banking expert Nguyen Tri Hieu. The average inter-bank rate of exchange yesterday, as listed by the State Bank of Vietnam, continued to stay at 20,828 dong per US dollar, a level it had maintained for almost all of a six-consecutive-month period since November 24 last year. Exchange rates on the regular market were showing correlative moves, with commercial banks — including Vietcombank, BIDV, Eximbank and Vietinbank — listing buying rates at around 20,820 dong/dollar and selling rates around 20,870 dong/dollar. Hieu told Thoi bao Kinh te Vietnam (Viet…

Gov’t strives to keep inflation below 10 pct

The Government is trying hard to achieve the single-digit inflation target, Deputy Minister of Industry and Trade Hoang Quoc Vuong said. Speaking to representatives of local and foreign businesses at a business luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham) in HCMC last week, Vuong said the consumer pricing index in the first two months of 2012 was the lowest level compared to the same period in previous years. Inflation hit 18.58 percent last year and 2.38 percent in the first two months of this year. “Observing what happened in the first two months compared with the records…

Vietnam should dwindle work intensive

Vietnam should change from work-intensive to more capital – and skill-intensive manufacturing, economists told a seminar in HCM City yesterday. Prof James Riedel, who shows worldwide financial aspects in the US’s Johns Hopkins College, stated Vietnam might be among the developing world’s quickest growing nations as praised by multilateral agencies, consider 2006 its rate of growth continues to be lower plus much more unstable. Vietnam should contend with other nations based on its growing human capital and technology. Pham Minh Tri, chair from the HCM City Economic Science and Management Association, stated: “If your country’s exports derive from work, it…

Vietnam cbank to shrink banks’ FX positions

HANOI – Vietnam’s central bank said on Wednesday it will require lenders to reduce the amount of foreign currency they hold at the end of each day beginning in early May, in what bankers said was another attempt to prevent dollar hoarding and control the foreign exchange market. Starting on May 2, banks will have to keep their long foreign exchange position at no more than 20 percent of their equity by the end of each working day, compared with 30 percent now, the State Bank of Vietnam said in a statement. The 20 percent ratio will also be applied…

Single-Digit Inflation Hard To Achieve: Trade Ministry

The single-digit inflation goal for this year is a real challenge but the Government is still trying to translate it into reality, said Deputy Minister of Industry and Trade Hoang Quoc Vuong. Speaking to representatives of local and foreign businesses at a business luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham) in HCMC last week, Vuong said the consumer pricing index in the first two months of 2012 was the lowest same-period level compared to previous years. Inflation hit 18.58% last year and 2.38% in the first two months of this year. “Observing what happened in…