Dollar Fever Predicted to Hit Vietnam Soon
The USD/VND exchange rate is forecast to keep rising for at least two months to come in Vietnam, state media quoted a director of a Hanoi-based commercial bank as saying Thursday.
The rate will depend on the moves of the State Bank of Vietnam, the director said, implying the purchase and sale by the central bank as the financial buyer and seller on the market.
He said banks will have to move heaven and earth to get enough dollars to feed the demand of the country’s economy.
After having fallen for five months, the U.S. dollar is appreciating in Vietnam, fuelled by the local soaring demand for imports.
On April 6, the dollar price on the black market in Hanoi rose by VND420-VND500/US$1, or 3 per cent-4 per cent in the last 10 days while it was selling at VND16,220-VND16,240/US$1 in HCM City.
It is the first time the VND/USD exchange rate hits the ceiling level (the rate applied in transactions by commercial banks and businesses is 1 per cent higher than the exchange rate announced by the State Bank of Vietnam).
The dollar strengthened sharply last week because HSBC purchased a big volume of dollars for its clients.
Analysts all said that the demand for dollars is increasing. By the end of the first quarter of 2008, the trade deficit had reached US$7.36 billion, or 2.7 times higher than the export turnover.
Meanwhile, foreign investors are trying to convert VND into dollars as they have not disbursed their money for investments yet because of slumping stock market.
In an effort to calm the market down, the State Bank of Vietnam said it has been selling dollars to commercial banks in order to satisfy the demand for making payments. (www.hanoimoi.com.vn))
Vietnamese
