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Banking & Finance

Seafood exporters seek easing of currency restrictions

Released at: 18:44, 25/04/2016

Seafood exporters seek easing of currency restrictions

VASEP asks SBV to remove regulations limiting access to foreign currencies.

by Hung Nguyen

The Vietnam Association of Seafood Exporters and Producers (VASEP) has submitted documents to the State Bank of Vietnam (SBV) regarding Circular No. 24, which states that from March 31 certain enterprises are not permitted to borrow foreign currencies from banks and then exchange them into Vietnam dong to buy materials.

According to VASEP, if the article was applied to enterprises that have demand for short-term capital to conduct export-related activities it would lower the competitive advantage of Vietnam’s exporters.

VASEP therefore proposed the SBV Governor reconsider and remove the regulation.

The association also said that exporters borrowing short-term currencies would not influence the stability of foreign exchange rates.

This is second time in four years VASEP has submitted a proposal to the SBV regarding the matter.

An expert from SBV said it would be difficult for the central bank to agree to the VASEP proposal.

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