Banks to expand forex services to individuals

24-Nov-2004 Intellasia | 23/Nov/2004-Saigon Times Daily-Page 2 | 12:56 PM Print This Post

The central bank has allowed commercial banks to provide their forex forward and option services to individual customers, in addition to corporations. The central bank’s Decision 1452 states that individuals with incomes in foreign currencies can buy foreign currencies from banks under forward or option contracts.
This will help buyers hedge against the risks caused by the fluctuation of foreign currencies, according to Truong Van Phuoc, director of the central bank’s foreign exchange department.
He said the decision would especially benefit those whose children study abroad because they can buy a specific amount of foreign currency at a fixed future date to pay for their children’s tuitions.
Of course banks will charge a fee for the service. More than 10 banks in Vietnam now provide forex forward and options to their corporate clients, Phuoc said.
Separately, the central bank also gave the go-ahead to the Asia Commercial Bank (ACB) and the Bank for Agriculture and Rural Development of Vietnam (Agribank) to provide gold options to both individual and institutional clients.
ACB is slated to launch the service next month, while Agribank has not yet set a start date.
The gold options will give bullion traders rights to buy or sell gold at a fixed price within a specified time.

 


Category: Finance

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