Vietnam Opens Inter-Bank Foreign Currency Market
HANOI, Vietnam (AP) _ Vietnam opened its first inter-bank foreign exchange market Saturday, in a step toward creating a modern system of currency trading for investment, trade and tourism.
The market includes 22 foreign and Vietnamese banks, including the State Bank of Vietnam, the country’s central bank, the state-run Vietnam News reported.
Member banks will trade U.S. dollars and Vietnamese dong at rates set by the State Bank. The market will expand later to include German marks, British pounds, French francs, Japanese yen and Hong Kong dollars.
The inter-bank market replaces foreign exchange transaction centers in Ho Chi Minh City and Hanoi. Only 10 percent of Vietnam’s daily foreign currency trading took place in the old transaction centers, said John Brinsden, chief executive in Vietnam for Britain’s Standard Chartered Bank. Brinsden said the new computerized inter-bank market will handle much more of business.
″It’s not going to have a huge impact on day one, (but) it’s a welcome step forward,″ he said by telephone from his office in Ho Chi Minh City.