Banks devaluate dong amid concerns over gold imports
Banks devaluate dong amid concerns over gold imports
Commercial banks yesterday raised US dollar prices by VND10-20, after holding rates constant for nearly a week.
The central bank remained at VND21,036 yesterday, unchanged since June 28; while the interbank rate was also stable at VND21,036.
Vietcombank yesterday listed the exchange rate at VND21,110 for bid and VND21,170 for ask, up VND30 and VND20 on the previous day.
Rates also climbed at ACB and VietinBank by VND30; to VND21,090 and VND21,105 for bid and VND21,180 and VND21,185 for ask, respectively.
Eximbank's rate was VND21,090 for bid and 21,170 for ask, up VND20 and VND10, repsectively.
The move follows two weeks of devaluations against the dong by commercial banks, listing the dollar between VND21,200 and VND21,100.
Commercial foreign exchange rates remained lower than the central bank's, but within the 1 per cent margin of the central bank's official rate.
Concerned about the effect of gold material imports for jewellery production on the foreign exchange market, the central bank requested gold importers to balance supply and demand to avoid a backlash in the forex market.
Deputy director of the central bank's HCM City branch, Nguyen Hoang Minh said the application of Phu Nhuan Jewellery Co (PNJ) and Viet Nam Agribank Gold Joint Stock Corporation (AJC) to import gold materials had been approved in principle, of which PNJ would likely be allowed to import 1 tonne of gold and AJC, 1.3 tonnes. However, each import will be restricted to under 100 kg.
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