Vietnam SBV Bans Using State Budget to Buy Dollar Bonds
The State Bank of Vietnam (SBV), the country’s central bank, has issued a decree, banning domestic institutions to use funds from the state budget to buy dollar-denominated g-bonds, the SBV said in a statement on its Website.
Investors must open a foreign currency account at commercial banks licensed to provide forex services for trading U.S. dollar bonds.
Dollar bond holders can use the notes as collaterals to borrow loans at credit institutions providing forex services, the SBV noted.
Earlier, the SBV permitted local commercial banks to mortgage their dollar g-bonds to access dong loans from the central bank in order to support their liquidity. The decision took effect beginning July 16. (SBV, Capital’s Security)
Vietnamese
