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Banking & Finance

SBV urges commercial banks to sell foreign currencies

Released at: 15:12, 26/08/2015

SBV urges commercial banks to sell foreign currencies

Central bank meets with commercial banks as exchange rates fluctuate over recent days.

by Hung Nguyen

Given the recent movements in the foreign exchange rate, the State Bank of Vietnam (SBV) held an extraordinary meeting on August 25 with leaders of commercial banks, chaired by Governor Nguyen Van Binh.

Governor Binh confirmed that the SBV would not adjust the exchange rate again until the end of the year and asked commercial banks to cease holding USD and continue to meet the needs of enterprises.  

The SBV is ready to sell its foreign exchange reserves to intervene in the demand in the market and at commercial banks.

According to the leader of one commercial bank, the SBV has implemented measures to keep the foreign exchange market stable, including selling foreign currencies to banks in need at prices lower than the ceiling price. At the same time the central bank will tighten liquidity in the interbank market, so that profit cannot be made from holding foreign currencies.

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