Vietnam stru
Businesses sDong hits 2.5-year high on inflation measures
Written by tuan on 2008/03/18 23:31
| The Vietnamese dong traded near the highest level since August 2005 on concerns that the central bank will reduce funds in the banking system to combat inflation. | |
The State Treasury of Vietnam will need to deposit all of its money in the State Bank of Vietnam instead of commercial banks, partly as a measure to curb prices and lending, a statement posted on the central bank’s website said Thursday. Deposits at Vietnam’s five state-owned commercial banks were VND53 trillion (US$3.3 billion) at the end of last year, according to the statement. The currency touched VND15,863 a dollar, the strongest level since August 19, 2005, according to data compiled by Bloomberg. The dong completed its 12th winning week. Benchmark five-year bonds declined on speculation that the government is increasing debt sales to rein in inflation. The yield rose 4 basis points, or 0.04 percentage points, to 8.66 percent, according to a daily fixing price from 10 banks. Source: Bloomberg | |
