Illegal foreign currency transactions are an everyday sight in many areas in Hanoi, particularly on Ha Trung Street, the capital city’s biggest foreign currency market. The recent case that a man in the Mekong Delta city of Can Tho has been fined up to VND90 million (USD4,000) for exchanging USD100 into Vietnam Dong at local gold shop made headlines across Vietnam. A man counting US dollars at a gold shop on Ha Trung Street The gold shop had to pay a fine of VND295 million (USD13,409) for being unlicensed to carry out foreign currency transactions. Many people have been shocked at the case in Can Tho, saying that they even did not know anything about the fine regulations. Foreign currency exchanges are quite common in Vietnam, and it is extraordinarily rare to see such a fine. However, despite the VND90-million fine, the trading of foreign currency on Ha Trung Street, Hoan Kiem District, has continued uninterrupted. Speaking with Lao Dong Newspaper, a … [Read more...] about Foreign currency black market active in Hanoi
Foreign currency trading how to
Last Friday, one week after the exchange rate officially rose by 9.3%, the unofficial exchange rate increased by a similar magnitude. The gap between official and unofficial exchange rates returned to the pre-adjustment level as a result. As these changes adversely affect the public, there must be immediate measures to curb rising exchange rates. In the short run, the State Bank of Vietnam (SBV) can directly prevent exchange rates from inching up every day by selling dollars. When supply meets demand, the exchange rate will stabilize around the level that SBV deems as appropriate. At first glance, this measure is feasible from SBV's perspective because the market's demand for dollars can be satiated in principle by dollar supplies from export, remittances, foreign investment and official development assistance. Reality, however, is far more complex. In some cases, the dollars reaped by exporters are not brought back to Vietnam or are held in these enterprises' account while … [Read more...] about How To Curb Currency Depreciation
VietNamNet Bridge - State management agencies blame speculation for the dollar price fever. People rush to purchase dollars, while businesses refuse to sell dollars to banks. why do people and businesses try to hoard dollars? Uncertainties encourage speculation on the morning of December 1, Minh bought dollars on the black market at 21,570 dong per dollar. The dollar price has increased by 2000 dong per dollar just over the past two months. The price has exceeded the record threshold of 21,500 dong per dollar and it is coming closer to 21,600 dong. … [Read more...] about How to ease the “dollar fever”?
VietNamNet Bridge - Policy makers realize that high inflation is the biggest threat to the national economy, especially after the adjusted exchange rate. Therefore, keeping a rein on inflation rate becomes the priority. Reducing interest rates to fight inflation? According to Deputy Chair of the National Assembly's Economics Committee Vu Viet Ngoan, in the second half of 2010, even though the exchange rate was stable, the consumer price index (CPI) for the whole 2010 still reached 11.75 percent. Therefore, the latest exchange rate increase of 9.3 percent will certainly have a big impact on the national economy. Therefore, Ngoan has urged policy makers to introduce price control measures to prevent sharp increases. … [Read more...] about How to keep a rein on inflation?
Expats fume over foreign currencies on price tags (13-06-2009) Last week, the Viet Nam News asked its readers what they thought about Viet Nam's regulation banning foreign currencies, particularly the US dollar, from being quoted on price tags, menus, tours – and in many other places. Today, we publish readers' thoughts on the subject. Peter Wijewardene, Australian, Ha Noi I have lived in Viet Nam for over 15 years. Unfortunately, unlike most foreigners, I receive my income in the local currency, not US dollar. However, as my rent and services are quoted in dollar, I have to convert dong to dollar at the going rate, which is always rising. … [Read more...] about Expats fume over foreign currencies on price tags