Banks say dollar liquidity improves but still in short supply

HCMC, SGT, Jan 8, 2009. Commercial banks have seen substantial improvement in dollar liquidity since the central bank hiked the inter-bank rate on December 25, but the foreign currency is still in short supply as exporters are still hesitant to sell their foreign earnings to banks.

“Exporters do not want to sell all of their dollars to banks, but just part of their holdings when they need funds in Vietnam dong,” he said, adding the main source of dollars at this time was from the State Bank of Vietnam.

Prices on the unofficial market are still higher than at banks, proving supply and demand on the U.S. dollar are not balanced although the situation is better than in December.

On December 25, the inter-bank rate increased by 3% to VND16,989.

At Vietnam Export Import Commercial Bank, or Eximbank, the dollar price purchased via accounts has been unchanged at VND17,430 per dollar from December 30 last year while its selling prices have gradually decreased from VND17,489 to VND17,480 on Tuesday.

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