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SBV’s dollar purchases too limited to help (21/01)
06/08/2010 - 33 Lượt xem
The VND/US$ exchange rate has not yet recovered despite the State Bank resuming its dollar purchasing from commercial banks.
The VND/US$ exchange rate is now static at VND15,984-15,986/US$1, VND300/US$1 below last month.
One banker said the volume of dollars being kept in commercial banks’ coffers is quite large, and people shouldn’t expect the dollar to revaluate after only a few days since the central bank made its decision to resume purchasing dollars (January 15).
According to Dao Hong Chau, Deputy General Director of Eximbank, the decision by the central bank to purchase dollars will help ease the pressure on commercial banks. However, he said, the SBV is limiting its purchase volume. Eximbank, for example, has registered to sell $10mil a day, but the central bank has only purchased 10% of that amount from them.
Meanwhile, Director of a joint stock bank complained that the state bank is only purchasing dollars from foreign banks in order to provide more VND to foreign investors to make transactions. Recently, several foreign investment funds complained that they could not convert dollars into VND.
“The state bank only purchases dollars from local joint stock banks in dribs and drabs, therefore, the dollar will not soon recover,” the Director said.
The volume of dollars stuck at foreign banks, through which foreign investors make securities investments, is quite large. That explains why foreign banks are offering to sell dollars on the inter-bank market at very low prices, VND15,950/US$1 or VND40/US$1, much lower than the rate quoted by local joint stock banks.
Foreign investors don’t actually want to sell dollars right now, while the value is so low: the dollar has fallen 0.5% compared to one year ago. If foreign investment funds sell millions of dollars they have mobilized from investors, they will lose a lot of money.
Bankers and securities experts are urging the State Bank of Vietnam to push up the purchase of dollars, saying this would ‘bring more good than harm’.
Source: VIR
