Viet­nam re­mit­tances will reach $7.3 bil­lion

The Pak Banker - - Company& -

HANOI: Over­seas re­mit­tances to Viet­nam, a ma­jor source of for­eign cur­rency, will reach $7.3 bil­lion this year, ris­ing 14 per­cent from last year's $6.4 bil­lion, cen­tral bank gover­nor Nguyen Van Giau has said as he tried to cool con­cern of a squeeze on dol­lar liq­uid­ity.

Giau told re­porters the sup­ply of for­eign ex­change in the do­mes­tic mar­ket could also ben­e­fit sig­nif­i­cantly if a pro­posal he made to the trade min­is­ter to con­sider us­ing lo­cal­lyre­fined oil prod­ucts in­stead of im­ports gets adopted.

"If it works out, the for­eign ex­change sup­ply will be su­ple­mented sub­stan­tially next week," he said.

The dong cur­rency VND=VN has weak­ened against the dol­lar and on Thurs­day was trad­ing at 21,370/21,450, ac­cord­ing to an in­for­ma­tion ser­vice pro­vided by a state-run tele­coms com­pany-nearly 9 per­cent lower than of­fi­cially per­mit­ted by its banded peg.

Econ­o­mists say sev­eral fac­tors are be­hind the dong's slide, in­clud­ing high in­fla­tion, trade and bud­get deficits and soar­ing gold prices.

A year-end in­crease in de­mand for dol­lars, in part due to sea­sonal fac­tors but also par­tially the re­sult of a spate of dol­lar-de­nom­i­nated loans com­ing due, was also a fac­tor.

Viet­namese au­thor­i­ties pledged in early Novem­ber not to ad­just the of­fi­cial ex­change rate be­fore Tet, or the Lu­nar New Year fes­ti­val, which falls in early Fe­bru­ary 2011.

The State Bank of Viet­nam raised pol­icy rates by 100 ba­sis points shortly af­ter that an­nounce­ment and has been se­lec­tively pro­vid­ing dol­lars into the sys­tem. Viet­nam's only op­er­a­tional re­fin­ery, the 140,000-bar­rel-per-day Dung Quat plant on the cen­tral coast, is es­ti­mated to be able to meet about 30 per­cent of the coun­try's petrol de­mand-mean­ing for­eign cur­ren­cies have to be found to buy oil from ex­ter­nal sources. -PB News

IS­LAM­ABAD: Am­bas­sador of UAE in Pak­istan Ali Saif Al-Awani poses for a group photo with Eti­salat ad­vi­sory mem­bers and man­age­ment of PTCL on the oc­ca­sion of 39th Na­tional Day of United Arab Emi­rates UAE. -On­line

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