Vietnam Not to Withdraw More Money Till July, SBV Says

The State Bank of Vietnam, or central bank, does not have any measures to tighten supply of domestic currency at least till the end of June, after it has issued compulsory treasury bills worth VND20.3 trillion, said Le Xuan Nghia, head of the central bank’s Banking Development Strategy.

 

It is necessary to have time for the tight monetary policies, which central bank has applied recently such as the increase of compulsory reserves to 11 per cent and the issuance of t-bills, to take effect, Nghia said.

 

The Banking Development Strategy Department has suggested the central bank to allow all commercial banks to buy and sell U.S dollar under negotiation methods with trading band wider than that regulated by central bank in order smoothen forex market, he said.

 

At present, the SBV only gives permission to the Vietnam Export and Import Bank (Eximbank) on the trial condition to buy US dollar of individuals with negotiating prices.

 

(Pioneer March 19, Youth Mar 19)