9:57:11 PM | 29/5/2008
The VND/USD exchange rate unexpectedly decreased by VND1,000 against USUS$1 on the free market May 28 from its peak of VND17,600/US dollar set just a day earlier, the Tuoi Tre (Youth) newspaper reported.
By May 28’s afternoon, as the speculative fury eased, and the VND/USD rate fell back to about VND16,700/US$1 from VND17,600/US$1 on May 27.
A Hanoi-based commercial bank director called on the State Bank of Vietnam to make tougher measures on regulating the foreign exchange market to balance the supply and demand of the U.S. dollars.
Commercial banks reportedly saw a critical shortage of dollars, with Vietcombank, the leading forex bank, reporting it was unable to buy enough dollars at listed exchange rates that had fallen far below the open market.
At some banks, importers have had to borrow in dong and then exchange to greenback, at considerable cost.
Analysts said that Vietnam's total foreign currency reserves are now equal to five months of imports. The country reportedly spent US$37.81 billion on importing commodities in the first five months of this year.
China, meanwhile, has a foreign currency reserve totaling US$1.5 trillion and South Korea and Japan also have very high foreign currency reserves. (Youth)
Vietnamese
