Conference on currency swap and risk management products held
26-JUL-2008 Intellasia | State Bank of Vietnam
Jul 26, 2008 - 7:00:00 AM
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State Bank of Vietnam in conjunction with International Finance Corp (IFC) on Wednesday held a conference titled "Aid in domestic currency based on swap tool and risk management products" giving overview on credit products of domestic currency swap that IFC wants to provide in Vietnam.
At the conference, IFC also shared its experience in credit provision in domestic currencies in other Asian countries and proposed next steps in launching credit provision based on local currency swap in Vietnam.
IFC can lend long-term loans in 23 different currencies including dong, Chinese yuan, Philippine peso, Thai bath, Indonesia and Sri Lanka's rupee, Hong Kong dollar, and Korea's won.
As for projects without foreign currency turnover, for example projects on building infrastructure or lending for SMEs, the lending in domestic currency will help minimise forex exposures.
According to specialists, IFC will help customers avoid risks in foreign currency loan payment by converting these loans into the dong and access the derivative market. Through the combination of trading foreign currency (FX) swap and a US dollar loan from IFC (instead of borrowing loans in domestic currency), customers can separate the implementation time and deadline of a swap transaction from US dollar loans.
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