Vietnam’s Foreign Exchange Reserves Fell to $ 13.6 Billion, Citigroup Says

Jan 21, 2011. Vietnam’s foreign-exchange reserves, the level of which has sparked concerns about the stability of the country’s economy, fell to about $ 13.6 billion by the end of last year, down from $ 14.1 billion in September and $ 23.9 billion in 2008, according to Citigroup Inc.

In December, the International Monetary Fund said Vietnam’s reserves were “low” at 1.8 months of prospective imports at the end of September, without giving an overall figure. Moody’s Investors Service cited Vietnam’s “reduced” level of foreign- exchange reserves as one of the main reasons it downgraded the country’s debt rating in December.

“We expect foreign-exchange reserves will stagnate for longer,” Hong Kong-based Johanna Chua and Ben Wei of Citigroup wrote in a research note dated today. Citigroup anticipates “only a modest recovery in 2011,” they said.

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