Vietnam Has Sufficient Forex Reserve for Imports: State Bank
Vietnam has reserved sufficient foreign currency to pay for its imports despite the appreciation of the US dollar against the Vietnamese dong, the State Bank of Vietnam (SBV) has affirmed.
Foreign currencies held by the bank, which is also the country's central bank, are enough to pay for nine weeks of imports, the Viet Nam News newspaper quoted a source from the bank as saying.
During the January-July period, the central bank's reserve averaged $7 billion a week which is reported to be sufficient to cope with forex fluctuations or any shortage of foreign currencies, the bank said.
The inter-bank forex rate between the US dollar and the Vietnamese dong was VND15,973 for one US dollar Tuesday August 15, according to the bank.
The country, said the bank, needs some $25 billion for imports from now until the year-end.
Vietnam's foreign currency supply has grown, partly due to the country's higher export revenue which was reported at $22.3 billion in the first seven months, a year-on-year rise of 25.7 per cent.
It is expected to earn $40 billion from exports and need foreign currencies worth $45-50 billion for imports in 2006.
Additionally, the foreign currency supply is also ensured by the inflow of foreign direct investment (FDI). According to the country's Ministry of Planning and Investment, the country attracted $3.4 billion of FDI in the first seven months.
Xinhua, VNS
Vietnamese
