Besides businesses using these loans for payments with foreign partners, other businesses will have to prove why need foreign currency loans or will be told to instead buy foreign currency. This is expected to stop borrowing in US Dollars to buy dong.
There were no signs of any significant changes the country’s forex markets following the introduction of the new policy. A marginal decrease of 21 VND was recorded in the central rate, bringing it down to 21,857 VND a dollar. Buying and selling rates stood 22,240 VND a dollar and 22,255 VND a dollar respectively. According to exporters, the new tightened policies haven’t had much of an effect on their business.
Even though Vietcombank has a large number of clients involved in the export sector, the bank estimated that only 300 of them wouldd be affected by the new rules.
Along with other initiatives like lowering USD interests to 0%, tightening policies of foreign currency loans will help Vietnam better control speculators taking advantage of these loans.
