Posts Tagged ‘VND’ – By adding $900 million in May, Vietnam’s forex reserve now is estimated to reach $13.5 billion, the International Monetary Fund (IMF) said in the Consultative Group meeting for Vietnam on Jun 9.

The close combination between credit and suitably-adjusted forex rate has supported to stabilise the forex market particularly and macroeconomy generally, the organisation representative commented.

This was shown clearly in the international finance market as credit default index (CDs) of Vietnam fell about 100 basic points from over 400 basic pts in February.

(more…) – The State Bank of Vietnam (SBV) on March 3, 2011 has issued Decision 379 raising most interest rates in the market to 12 percent per annum while maintaining base interest rate at nine percent per annum.

Rediscount rate was increased most, from seven to 12 percent per annum. This monetary tightening move of SBV has greatly affected interest rates and exchange rates on the market.

(more…) – The central bank’s strong-worded warnings to foreign currency trading outside banks have sent ripples through the black market, as most private forex counters in Hanoi and then HCMC have refrained from money dealings these days.

Money changers in Hanoi City succumbed to the warnings first, as most dealers refused trading on Monday, while the phenomenon spread to HCMC a day later. Those in need of U.S. dollars now find it difficult to buy the greenback on the “black market”, which somewhat lends support to the local currency.


-ANALYSIS – For wood craftsman Tong Trong Nghia, Vietnam’s bold currency devaluation will likely bring higher costs and squeezed profits.

But for some economists, the Feb. 11 move could be a welcome signal that authorities are getting to grips with woes making Vietnam — an investment hotspot when it joined the World Trade Organisation in 2007 — slip off the radar of emerging-market investors.