Business

Dollar sales ease shortage

The US dollar liquidity of the banking system has improved remarkably since beginning of January, as major State-owned enterprises have complied with a Government order and sold about 450 million USD to commercial banks.

The US dollar liquidity of the bankingsystem has improved remarkably since beginning of January, as majorState-owned enterprises have complied with a Government order and soldabout 450 million USD to commercial banks.

According to State Bank of Vietnam deputy governor Nguyen Dong Tien,most of the dollars were placed on non-term deposit by sevenState-owned economic groups and corporations, including oil and gasgiant PetroVietnam, mining giant Vinacomin, the Vietnam NationalChemical Corporation (Vinachem) and Vietnam Airlines.

“The US dollar sales have supported the forex market very much. Bankshave more room to breath,” said Habubank deputy director Nguyen DuHuong. “The foreign exchange system has stabilised thanks to theGovernment’s move, although I don’t know how long the support willlast.”

The interbank exchange rate of 17,941 VND per US dollar has been stablefor over a month, a situation rarely seen in recent years.

Tien, meanwhile, said that the Government would get tougher on illegal currency traders.

The State Bank was working with municipal People’s committee, mediaoutlets and public security officers to promote and inspect forcompliance./.

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