Post From KTFA by backdoc
July 13th, 2014, 12:12 am • [Post 85]
DON'T BE DISTRACTED BY THE EVENTS JUST ON THE DINAR STAGE !
WE ARE ALSO SEEING SIGNIFICANT REFORM TAKING PLACE SIMULTANEOUSLY ON THE DONG.
I DON'T THINK THIS IS JUST COINCIDENTAL. DOC
Dong posts biggest weekly advance since 2012 on dollar supply
July 11, 2014 23:03
Vietnam’s dong posted the biggest weekly advance in more than two years after foreign-exchange reserves rose to a record.
There’s a good supply of foreign currency as exporters sell dollars to banks instead of hoarding cash, the Tuoi Tre newspaper reported today. Reserve holdings climbed to an unprecedented $35 billion at the end of June, the central bank said on July 9.
The dong rose 0.4 percent to 21,200 per dollar this week, the most since the five days ended Feb. 17, 2012, according to prices from banks compiled by Bloomberg. The currency was little changed today.
The central bank kept its daily reference rate unchanged at 21,246, according to its website. The currency is allowed to trade as much as 1 percent on either side of the fixing.
“Evidently, the State Bank of Vietnam’s stern emphasis on monitoring the foreign currency loan situation, concurrently flexible in terms of credit growth, as well as the high forex reserves have had a positive impact on the exchange rate,” Saigon Securities analysts including Phuong Hoang and Hung Pham wrote in a report today.
The five-year government bond yield climbed one basis point today and dropped four basis points this week to 7.01 percent, according to a daily fixing from banks compiled by Bloomberg.
Post From KTFA By backdoc
July 13th, 2014
Vietnam central bank expects credit to double during rest of 2014
Thanh Nien News July 10, 2014 18:00
Vietnam’s banking sector is struggling to meet its credit growth target of 12 percent this year. Photo credit: Vietnam News Agency
Lending by Vietnam banks will rise more than 10 percent this year as credit growth typically quickens in the second half, the central bank governor said.
Nguyen Van Binh, Governor of the State Bank of Vietnam, said though credit was up only 3.52 percent in the first half, the hike in the rest of this year would double that figure in line with market rules.
“Hence, lending in the second half will increase around 7 percent, sending the entire year’s credit growth to reach more than 10 percent,” new website Vietnam Plus quoted Binh as telling a meeting in Hanoi on July 9.
Binh also said the central bank would manage lending policies “more flexibly” to accelerate the credit expansion.
Earlier this month Nguyen Thi Hong, Director of the central bank’s Monetary Policy Department, said in a statement that the central bank loosened restrictions on dollar loans to boost overall credit growth.
Dollar credit expanded 12.03 percent in the first six months of this year while dong loans were up only 2.17 percent.
Vietnam’s banking sector is struggling to meet its credit growth target of 12 percent this year as many companies turn down bank loans to bolster production (given high inventories) and many others remain ineligible for loans due to their weak financial capacity.
The central bank governor said bad debt resolutions and support for businesses seeking customers would help improve credit growth.
The Vietnam Asset Management Company, a firm set up by the central bank in July last year to rescue debt-laden lenders, bought more than VND50 trillion (US$2.36 billion) of non-performing loans, according to Binh.
Binh also said foreign currency reserves remained unchanged at $35 billion.