#1vietnam

[forexedu-blog]

UPDATE 1-Vietnam ready to sell forex to stabilise exchange rate - c.bank

(Modifications attribution, adds details, qualifications)

By Ho Binh Minh

Could 27 (Reuters) – Vietnam’s central bank stands all set to assist stabilise the greenback/dong trade rate and will maintain the 2-p.c band motion for the relaxation of the calendar year, a deputy governor stated.

The Point out Bank of Vietnam (SBV) “is prepared to market international currency for intervention to maintain the exchange rate steady within the band committed to at the start off of the year”, Nguyen Thi Hong said in an interview posted on Wednesday on the central bank’s site (sbv.gov.vn).

The central lender, which does not routinely report international-exchange reserves, said final year the whole in June 2014 was $ 35 billion, in comparison with $ 9 billion in 2011.

The SBV, which has dedicated to trying to keep the Vietnamese dong transfer inside a 2 per cent band from the greenback in 2015, on May seven devalued the dong for the second time this 12 months.

The devaluations had been intended to spur exports and control imports. On Tuesday, the government declared a $ 3 billion deficit for the 1st five months. In the exact same period of time of 2014, there was a $ one.52 billion surplus.

“Standing by the see of the all round nationwide fascination, the SBV will proceed its path for the whole of 2015 to control (the exchange price) inside a 2-percent band,” Hong stated.

On Tuesday, the dong fell to 21,860 for every greenback on Vietnam’s interbank market, or .98 percent weaker than its 21,645 degree appropriate soon after the Could 7 devaluation.

UNCHANGED MIDPOINT

On Wednesday, the dong strengthened to 21,765/21,825 per greenback on the interbank industry. The central bank has held the formal mid-stage price unchanged at 21,673 dong per dollar because May 7.

Dollar/dong transactions are allowed to shift in a band of one p.c around the mid-level established everyday.

A significant dong devaluation could benefit exporters but it will also provide damaging affect to importers and raise the sovereign financial debt, Hong stated.

Keeping a sturdy domestic forex will also encourage banks to sell dollar to banking companies, which has been a practice since the start of this year, she extra.

In a report on May possibly 8, proper after the 2nd devaluation, ANZ mentioned the dong could drop three per cent to 22,050 dong per dollar at the end of 2015, faster than a one.4-% depreciation very last 12 months.

The government has projected that there could be a $ six billion trade deficit this calendar year. For the past 3 a long time, there have been trade surpluses. (Reporting by Ho Binh Minh Modifying by Richard Borsuk)

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UPDATE 1-Vietnam ready to sell forex to stabilise exchange rate – c.bank was originally published on Educationuniverse.Net

[loritavhmellen-blog]

UPDATE 1-Vietnam stock market, banks hit by $240 mln fraud-report

Police have detained a former executive of VietinBank's Nha Be branch in Ho Chi Minh City on charges of fraud, the Tuoi Tre newspaper run by the Ho Chi Minh City Communist Youth League said.The former executive and another staff of the bank, who is also in police detention, have falsified contracts between the bank branch and securities firms to misappropriate funds, Tuoi Tre quoted police sources as saying.The two have also used fake deposit contracts as collateral to get loans from banks and raised deposits from traders and investors on the over-the-counter stock market, it said.The credit scam has raised concerns over lenders' asset appraisal and management, said Nguyen Tuan, director of APEC Securities Co."Investor's confidence in the stock market has been severely hurt and led to sell-offs," he said.The benchmark VN Index has fallen around 14 percent this year.SALE OF AILING BANKSThe report of fraud emerged at a time when Vietnam's central bank is drafting a restructuring plan, paving the way for mergers and acquisitions among banks, in a move to step up the restructuring of the sector hit by rising bad debt.The State Bank of Vietnam is drafting the plan that included considering mergers and acquisitions to deal with small, struggling banks, an online report by the newspaper Sai Gon Tiep Thi newspaper said on Thursday.After years of high credit growth, bad debt in Vietnam's banking system reached 3.04 percent of all loans at the end of July from 2.16 percent at the end of 2010, according to government statistics.The central bank has said bad debt could rise to 5 percent of total loans by the end of 2011, but many economists and bankers say the true level of non-performing loans in the system is likely to be higher than the official figures.The newspaper report did not give any bank names for possible mergers and acquisitions or any timeline for the central bank's plan.At several banks, non-performing loans exceed the value of their equity, Sai Gon Tiep Thi quoted Le Xuan Nghia, deputy chairman of the National Financial Supervisory Council, as saying.Officials at the central bank were not reachable for comments.Vietnam has more than 40 partly private banks, led by VietinBank and Vietcombank , as well as four fully state-owned banks, two of which are policy lenders.State-owned Agribank, the country's largest bank by assets, had bad debt that accounted for 6.67 percent of its outstanding loans at the end of August, said the ruling Communist Party's bureau that watches state-run businesses. ($1=20,880 dong)

[jericamieckstei-blog]

UPDATE 1-Vietnam stock market, banks hit by $240 mln fraud-report

Police have detained a former executive of VietinBank's Nha Be branch in Ho Chi Minh City on charges of fraud, the Tuoi Tre newspaper run by the Ho Chi Minh City Communist Youth League said.The former executive and another staff of the bank, who is also in police detention, have falsified contracts between the bank branch and securities firms to misappropriate funds, Tuoi Tre quoted police sources as saying.The two have also used fake deposit contracts as collateral to get loans from banks and raised deposits from traders and investors on the over-the-counter stock market, it said.The credit scam has raised concerns over lenders' asset appraisal and management, said Nguyen Tuan, director of APEC Securities Co."Investor's confidence in the stock market has been severely hurt and led to sell-offs," he said.The benchmark VN Index has fallen around 14 percent this year.SALE OF AILING BANKSThe report of fraud emerged at a time when Vietnam's central bank is drafting a restructuring plan, paving the way for mergers and acquisitions among banks, in a move to step up the restructuring of the sector hit by rising bad debt.The State Bank of Vietnam is drafting the plan that included considering mergers and acquisitions to deal with small, struggling banks, an online report by the newspaper Sai Gon Tiep Thi newspaper said on Thursday.After years of high credit growth, bad debt in Vietnam's banking system reached 3.04 percent of all loans at the end of July from 2.16 percent at the end of 2010, according to government statistics.The central bank has said bad debt could rise to 5 percent of total loans by the end of 2011, but many economists and bankers say the true level of non-performing loans in the system is likely to be higher than the official figures.The newspaper report did not give any bank names for possible mergers and acquisitions or any timeline for the central bank's plan.At several banks, non-performing loans exceed the value of their equity, Sai Gon Tiep Thi quoted Le Xuan Nghia, deputy chairman of the National Financial Supervisory Council, as saying.Officials at the central bank were not reachable for comments.Vietnam has more than 40 partly private banks, led by VietinBank and Vietcombank , as well as four fully state-owned banks, two of which are policy lenders.State-owned Agribank, the country's largest bank by assets, had bad debt that accounted for 6.67 percent of its outstanding loans at the end of August, said the ruling Communist Party's bureau that watches state-run businesses. ($1=20,880 dong)