Prime Minister requests two state owned groups sell dollars

The document was released after the State Bank of Vietnam asked the Prime Minister to urge state owned corporations to sell dollar to banks as a measure to stabilize the foreign currency market.

 

Governor of the State Bank of Vietnam Nguyen Van Giau has promised to sell dollars to commercial banks so that banks can have dollars to sell to businesses.

 

VnMedia reported that businesses still complained that they could not purchase dollars on November 26, the first day of the new exchange rate and trading band.

The problem lay in the fact that many businesses registered to purchase dollars that morning at 18,500 dong per dollar. However, under current regulations, the State Bank only sells dollars to banks short on foreign currencyat the end of day, therefore, banks had no dollars to sell in the morning. Meanwhile, a newspaper reported that a lot of small businesses which have dollars have been selling them after they heard the State Bank was to intervene in the foreign currency market.

 

In early afternoon of November 25, import companies could purchase dollars at 19,000-19,100 per dollar, which cheaper by 700-800 dong over the previous day. However, the newspaper said, while sellers now want to sell dollars, import companies aren’t hurrying to buy because they believe that the dollar price will drop further.