Vietnamplus

The dollarisation remains high in Cambodia, revealed the latest annual report by the International Monetary Fund (IMF) on the Southeast Asian nation.

Vietnam’s foreign exchange reserve has hit a new record high of 92 billion USD, a significant expansion from 84 billion USD which Governor of the State Bank of Vietnam Le Minh Hung revealed in April.

Promoting non-cash payment, digital banking, and green banking is the direction of the banking sector in the 2020-2025 tenure, State Bank Governor Le Minh Hung told a meeting in Hanoi on August 17.

The Vietnamese dong was expected to remain broadly stable against the US dollar over the remainder of 2019 and to be slightly weaker on average over 2020, buoyed by robust foreign direct investment (FDI) inflows, dollar purchases by businesses, and a healthy foreign reserve position, experts forecast.

Experts suggested firms use more derivative instruments, such as futures and forward contracts, to minimise exchange rate risks when they can no longer borrow the US dollar from commercial banks, starting early this month.

The restriction on foreign currency lending actually reduces the "virtual" supply and demand of foreign currencies, contributing to reducing dollarisation in the economy

The "Vietnam: Strengthening banking sector soundness and development" project is expected to help the State Bank of Vietnam to better anticipate and increase resilience to shocks.

The State Bank of Vietnam held its interest rates steady, and signaled it plans to stay hold until the end of 2019.

Commercial banks will no longer allow the provision of mid- and long-term foreign currency loans for offshore payments of imported goods and services from September 30 this year.

Economists have given bright outlook to Vietnamese economy, with the State Bank of Vietnam (SBV)’s credit growth target of 14 percent achievable.

The country net purchased over 6 billion USD in 2018 to raise its foreign exchange reserves, the State Bank of Vietnam (SBV) reported at a meeting in Hanoi on January 9 to launch tasks for the banking sector this year.

The State Bank of Vietnam (SBV) has set the 2019 credit growth target equivalent to the previous year at about 14 percent, according to SBV Deputy Governor Nguyen Thi Hong.

Analysts and securities firms are hoping Vietnamese shares will perform better in 2019, but there are still many challenges that will clearly weigh on market sentiment.

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.

PM Nguyen Xuan Phuc has required the State Bank of Vietnam to enhance inspection and supervision to ensure the safety of the banking system and increase the confidence of people in the system in 2018.

Exporters will no longer be allowed to borrow bank loans in foreign currencies beginning next year, if the State Bank of Vietnam (SBV) does not extend a circular regulating the loans.

The Government Office last week sent a written document to the central bank governor, referring to the mobilisation of idle gold and foreign currency sources from the people.

How to mobilise idle foreign currency and gold from locals to invest in business and production has become a hot issue recently, with the Government once again asking the central bank to consider proposals.

Prime Minister Nguyen Xuan Phuc has urged the State Bank of Vietnam (SBV) to take more comprehensive and bold measures to boost credit growth and reduce interest rates.

The State Bank of Vietnam’s anti-dollarisation efforts have managed to keep the dong-dollar exchange rate fairly steady for a long time, thus helping stabilise the monetary market.