Pham Hong Hai, deputy CEO of Vietnam HSBC expected dollar prices will rise against the dong in the fourth quarter of this year.
Dollar prices are likely rise against the dong in the fourth quarter of this year due to higher demand for import and debt payback and investment swift due to falling dong interest rate, the Thoi Bao Kinh Te Sai Gon (Sai Gon Times) quoted Pham Hong Hai, deputy CEO of Vietnam HSBC as saying at CEO club meeting on June 27 with the topic ” heat of exchange rate and interest rate”.
Hai analysed that while global market have many uncertainties, low economic growth, Vietnam also has many fundamental factors that make it difficult for forex stability. Current situations such as unpredictable EU zone crisis, what if Greece, Italy and Spain leave EU zone as they planned will impact on the USD and indirectly affect local forex exchange.
Hai, however, believes the dong devaluation will be not-too-much thanks to proper and timely intervention of central bank which is different from previous central bank’s actions. He pointed out that instead of interfering after the exchange gap between the official and back markets reached 3-5 percent as in the past, the central bank now act immediately after slight movement and can interfere through commercial banks or forex reserve.
He also believed the forex exchange rate will be stable at around VND20,850 in Q3/2012 but will rise against the dong in the fourth quarter of this year.
http://stoxplus.com/News/83404/1/186/hsbc-vietnam percentE2 percent80 percent99s-deputy-ceo-dollar-exchange-rate-likely-up-in-q4-2012.stox