To strengthen control of foreign exchange market, the State Bank of Vietnam’s Binh Duong branch will work with functional agencies to expand scale and operation of inspections on illegal business of gold and foreign currency. Binh Duong Newspaper had an interview with the branch vice director Nguyen Phu Cuong.
Could you assess local foreign exchange market?
Owing to unbalance between dollar exchange rate in the last few days in the black market and the rate quoted by commercial banks, export businesses did not want to sell dollars to banks or the quantity of foreign currency sold by businesses decreased sharply.
Fluctuation of change of foreign currency over the last few days.
The scarcity of foreign currency and unbalance between supply and demand made a fluctuation of exchange rates. Besides, some credit bodies bought dollars with a higher price than quoted rate to keep familiar clients. This caused a move of foreign currency from state banks to commercial ones.
To solve this status, the State Bank of Vietnam on Feb. 11, 2011 issued Circular No.3 on increasing interbank dong/dollar exchange rate up 18,544 dong per dollar in order to balance demand and supply of foreign currency, strengthen excess of imports over exports and stabilize macro-economy. Purchase of dollars at commercial banks increased insignificantly. The commercial banks reported that they can not absolutely satisfy demand for dollars from clients.
How will inspection on foreign exchange market be implemented, sir?
Implementing the SBV governor and the local People’s Committee, the branch will work with local Public Security, Market Control Squad to inspect change of foreign currency at credit bodies, agents and even goldsmiths’ stores.
Accordingly, the branch will inspect credit bodies’ operation on foreign currency change, local Public Security will check change of foreign currency at goldsmiths’ stores whilst local market control squad will supervise listing of goods prices and services in foreign currency at economic bodies.
How will fine level be issued for violations?
Firstly, a fine level of VND45-70mil will be for unlicensed agents of foreign currency change.
Secondly, a fine level of VND20-30mil will be for illegal service of foreign currency change.
Thirdly, illegal change of foreign currency at commercial banks and agents will be fined according to the Decree 202/2004/ND-CP.
Thanks a lot!
Reported by T.Hong – Translated by A.C
