SBV restarts USD buy-back scheme
SBV restarts USD buy-back scheme
The State Bank of Viet Nam has resumed buying back US dollars from commercial banks after nearly two months of interruption, the forex manager of a State-owned bank told VnEconomy online news.
The manager, whose bank sold a considerable volume of the foreign currency to the central bank, said that the amount was quite large.
Investment institutions also reported that commercial banks had sold the foreign currency for the past few weeks.
A senior official from the central bank confirmed the information but declined to disclose the purchased volume.
However, the official said the forex liquidity of the whole banking system was still positive, explaining that the central bank bought the greenbacks only from commercial banks whose dollar liquidity was very good, ensuring that the sales would not cause a supply shortage.
Industry insiders said that the purchase helped give the central bank a new supply to offset the dollar sources spent on gold imports and stabilising the forex market in June.
The move was made when the exchange rates fell rapidly and supply was favourable.
Yesterday dollars were being traded at VND21,075 by commercial banks, below the bid price of VND21,100 quoted by SBV's Central Banking Department.
In August, as exchange rates rapidly declined, the Central Banking Department raised the bid price from VND20,826 to VND21,100.
From late August to early October, SBV did not buy foreign currency despite good liquidity in the market and the relatively stable exchange rates.
According to Government reports released this week at the National Assembly meeting, the country's foreign currency reserve climbed to the equivalent of 12 weeks of imports in late 2012 to 2013, against 6.5 weeks in 2011 and six weeks in 2010.
If calculated on the average week of imports in the first nine months this year, the country's foreign currency reserves could reach a record high of US$32 billion.
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