The central bank has just issued a circular on foreign currency position supervision targeting local and foreign credit institutions, slashing the position to 20% from the current 30%. With the new circular, the figure of either total long position or total short position at the closing session of lenders shall not exceed 20% of their equity capital. The newly-issued rule requires each foreign bank’s... 

Vietnam’s central bank said on Wednesday it will require lenders to reduce the amount of foreign currency they hold at the end of each day beginning in early May, in what bankers said was another attempt to prevent dollar hoarding and control the foreign exchange market. Starting on May 2, banks will have to keep their long foreign exchange position at no more than 20 per cent of their equity... 

By February 20, the money supply dropped by 0.11% compared with the end of 2011. That was the official announcement of the central bank, showing that money had not been pumped out through official channels. However, the central bank has begun to issue treasury bills with terms ranging from 28 to 364 days worth thousands of billions of dong to partly absorb the ample supply in the system. So, what... 

The dong/dollar exchange rate stabilization in the last two months and the positive macroeconomic signs have both lured the foreign capital back to the stock market. It is expected that many foreign investments close funds are closing this year. Analysts once warned about the possible capital withdrawal wave, in which tens of trillions of dong would flow out of Vietnam. However, the analysts have... 

Properly explained and enforced policies, together with drastic measures to curb dollarization, have helped to strengthen the local currency The downward pressure exerted upon the Vietnam dong from 2008 to 2011 was ascribed to the country’s significant balance-of-payments deficit, lackluster foreign reserves, soaring inflation, appalling financial policies and sour sentiments among market players.... 

The gold price has been stable around the 44.8 million dong per tael in recent days. Meanwhile, the interbank dong/dollar exchange rate has been unchanged for the last nine weeks. The gold price went up and down at some moments, but it has not bounce back to regain the record threshold of 45 million dong per tael. People might think that once the gold price dropped to below 45 million dong, people... 

A circular issued by the State Bank of Vietnam (SBV) on February 27 says all foreign credit organizations and bank branches will be allowed to carry out foreign currency transactions with SBV if they meet the following conditions: They were established to operate within the law on credit organizations They were licensed by SBV to operate and do business through their foreign currency services in Vietnam. They... 

State regulations banning price quotations and transactions in foreign currencies is hurting travel firms. Two taxi firms incurred fines amounting to VND1 billion ($47,600) since they quoted prices in US dollars and recently a Tra Vinh firm incurred a penalty of VND50 million ($2,380) as it was found to transact $100 illegally have bothered travel firms. Hoi An Tourism marketing director Nguyen Son... 

The State Bank of Vietnam had kept the dong/dollar interbank exchange rate at 20,828 dong per dollar for the 39th consecutive day by late last week. The exchange rate stabilization has prompted people to sell dollars and keep dong. Nguyen Ngoc Lan in Hoan Kiem district in Hanoi on February 16 morning came to Eximbank to ask about the dollar prices, planning to covert the dollar deposits at the bank... 

The Hongkong and Shanghai Banking Corporation (HSBC) has predicted that the weaker import demand and a controlled weakening of the exchange rate by the SBV will help stabilise the Vietnam dong (VND) in 2012. According to HSBC’s “Vietnam 2012 Outlook: Some progress, but patience required” report which was released on February 20, inflation is easing and expected to reach single digits...