At the end of August, the selling price of the dollar was VND16,241/US$ on average, while the purchasing price was VND16,239/US$1, which means the margin between the selling and purchasing price level was VND2, instead of VND10 as regularly seen.

The thing has been explained as follows: the purchasing price has been raised to the highest possible level in order to attract more dollars to banks. Meanwhile, the selling price cannot be higher, because banks cannot offer a price higher than the ceiling level.

The figures show that commercial banks are now seriously lacking dollars. The demand for foreign currencies has increased by 30% compared to the beginning of the year. It is estimated that the demand for foreign currencies will keep rising towards the year’s end, as enterprises need foreign currencies in big quantity to import goods.

The greenback has revaluated by nearly 1% over the beginning of the year. At the beginning of the year, dollars were in excess, forcing the central bank to buy foreign currencies in. After the central bank bought foreign currencies in large quantity, there appeared the signs of a foreign currency shortage.

Regarding the interest rates on US$ deposits and loans, the rates have increased by 0.05%-0.57% compared to the beginning of the year – high increases, according to experts. Despite the increased interest rates, and the removal of the ceiling interest rates on US$ deposits, banks cannot mobilise much capital in US$.

According to the Hanoi Branch of the State Bank of Vietnam, the growth rate in US$ capital mobilisation in recent months was modest, at 2% per month over the last 8 months.

Despite the shortage of foreign currencies, no bank has applied to purchase foreign currencies from the State Bank of Vietnam. However, anticipating the dollar shortage, the central bank has gotten ready to sell foreign currencies to banks when necessary.

Truong Van Phuoc, Director of the State Bank of Vietnam’s Transaction Centre, said that once the foreign currency positions of banks fell to below –5%, banks would be sold foreign currencies.

Source: TBKTVN.