Residents should sell and buy foreigncurrencies only at banks or authorised agencies, the State Bank ofVietnam (SBV) has warned.
“If inspectors discover illegal foreign currency transactions atunauthorised agencies, all the money will be confiscated and theagencies fined heavily,” said Nguyen Hoang Minh, deputy director of thecentral bank’s HCM City branch.
He said that the bank would publicly announce regulations in the nearfuture that are aimed to curb black market dealings in foreigncurrencies.
Authorised foreign currency agencies, often located in luxury hotels,airports, railway stations, border gates and seaports, will be asked todisplay their permits for customers.
“If the Government wants to stabilise the market, the State Bank ofVietnam must eliminate all unauthorised agencies,” said Cao Sy Kiem,member of the National Advisory Council for Monetary Policy.
Vu Dinh Anh, deputy head of the Market and Price Research Institute,concurred with Kiem, adding that the Government should strictly manageforeign currency transactions.
“However, there is genuine demand among residents to sell and buyforeign currencies. Therefore, the SBV should consider how to organiseeasy access to authorised agencies,” Anh said.
The reason for existence of black market is small foreign currencysupply from banks, according to experts. Since enterprises can’t buysufficient foreign currencies from banks, they have to buy them in theblack market. Later they ask jewellery shops to sell the money to thebanks in their stead, and then buy it back from the bank with a legalreceipt.
In addition, individuals typically do not use banks for their foreign currency needs.
Many unauthorised agencies have been fined recently for trading inforeign currencies but most residents still do business with them.
Furthermore, authorised agencies have limited transaction with banksdue to the difference in exchange rates between banks and free market./.
“If inspectors discover illegal foreign currency transactions atunauthorised agencies, all the money will be confiscated and theagencies fined heavily,” said Nguyen Hoang Minh, deputy director of thecentral bank’s HCM City branch.
He said that the bank would publicly announce regulations in the nearfuture that are aimed to curb black market dealings in foreigncurrencies.
Authorised foreign currency agencies, often located in luxury hotels,airports, railway stations, border gates and seaports, will be asked todisplay their permits for customers.
“If the Government wants to stabilise the market, the State Bank ofVietnam must eliminate all unauthorised agencies,” said Cao Sy Kiem,member of the National Advisory Council for Monetary Policy.
Vu Dinh Anh, deputy head of the Market and Price Research Institute,concurred with Kiem, adding that the Government should strictly manageforeign currency transactions.
“However, there is genuine demand among residents to sell and buyforeign currencies. Therefore, the SBV should consider how to organiseeasy access to authorised agencies,” Anh said.
The reason for existence of black market is small foreign currencysupply from banks, according to experts. Since enterprises can’t buysufficient foreign currencies from banks, they have to buy them in theblack market. Later they ask jewellery shops to sell the money to thebanks in their stead, and then buy it back from the bank with a legalreceipt.
In addition, individuals typically do not use banks for their foreign currency needs.
Many unauthorised agencies have been fined recently for trading inforeign currencies but most residents still do business with them.
Furthermore, authorised agencies have limited transaction with banksdue to the difference in exchange rates between banks and free market./.
