Vietnam Banks Liquidity Better, Dollar Pressure Easing After Tet

Banks in Vietnam reported higher liquidity with dollar pressures easing after Lunar New Year 2010.

 

Local banks said that transaction activities turned much busier right on the first day after Tet as people and enterprises flocked to deposit their cash.

 

Dollar on the black market reportedly were trading against the dong lower but on sluggish transactions. Many analysts said that dollar exchange rate will continue to go down as enterprises will sell dollars due to a wide gap in interest rates in Vietnamese dong and U.S. dollar.

 

The Reuters said that dollar and dong loan rates in Vietnam started falling on Monday thanks to improved liquidity following a week-long holiday as the central bank kept injecting cash into banks after a devaluation this month.

 

Governor of the State Bank of Vietnam Nguyen Van Giau told mass media that the central bank has raised the total money supply to 28% for 2010, up from the projected 25% while keeping credit growth unchanged at 25%.

 

Local media reported that banks were selling U.S. dollar at VND19,100, the highest possible price while they bought at from VND18,550 to VND18,700 in different banks. (Laborer)