Vietnam Banks to Begin Trading in Local Currency
BANGKOK, Thailand (AP) _ Vietnamese and foreign banks will soon begin trading the Vietnamese currency, the dong, on the nation’s first interbank money market, the official Voice of Vietnam radio reported Monday.
The market will allow banks to lend and borrow dong for short-term cash needs.
Under the new system, banks may lend and borrow money with a phone call instead of the extensive meetings and paperwork now required, said Geoffrey Walker, deputy general manager of the French bank Credit Lyonnais in Hanoi.
″It is an important first step in bringing market disciplines and principles to Vietnam,″ Walker said.
The broadcast, monitored in Bangkok, said seven foreign banks with branches in Hanoi, including Credit Lyonnais, are expected to participate in the market.
The Australia and New Zealand Banking Group Ltd. already has applied for permission to trade on the market. A system for trading local currency is the first of a series of financial markets planned under Vietnam’s shift from a communist economy to a market system, the dispatch said.