Greenback firmer against dong on informal market

12-Mar-2015 Intellasia | The Saigon Times | 6:00 AM Print This Post

The US dollar has appreciated strongly against dong on the informal market over the past days despite the stable exchange rate at banks.

On the informal market, the greenback was quoted at VND21,660 for buying and VND21,690-21,700 for selling on March 9. Some gold shops and foreign currency exchange points in HCM City’s District 1 offered mild discounts for customers buying huge volumes.

According to a gold shop owner, the US dollar has been firmer versus the local currency. Since the end of the recent traditional Lunar New Year holiday, or Tet, some currency exchange points have bought a dollar at VND21,500-21,520 while selling it at VND21,560.

Meanwhile, the dong-US dollar exchange rate has remained stable at banks. Vietcombank on March 9 quoted the dollar at VND21,330 for buying and VND21,380 for selling, almost the same as the prices recorded late last week but VND5 lower than on March 4 and 5.

Eximbank and ACB sold a dollar at VND21,380 on March 9, much lower than the ceiling level of VND21,672 set by the central bank.

The gap between global and domestic gold prices remained large due to a strong price fall on the global market.

Saigon Jewellery Company (SJC) on March 9 quoted its gold selling price at VND35.31 million per tael, up VND60,000 against the previous session, but it has still been in the downtrend since February 28.

After Tet, SJC gold price increased and hit VND35.7 million per tael on the God of Wealth Day, the tenth day of the lunar year (February 28 this year). The enterprise saw a surge in buyers that day and a few days ago but consumption then declined sharply. In general, gold trading in the country has remained sluggish with prices of the precious metal forecast to drop further. Global gold is also predicted to fall in short, medium and long terms.

Given the exchange rate, the world price was around VND30.24 million per tael equivalent, VND5.07 million lower than the domestic price.

Since February 25, domestic gold has lost around VND170,000 a tael, or over 0.47 percent, while the world price has tumbled $36.3 an ounce, or around 3 percent.

http://english.thesaigontimes.vn/39801/Greenback-firmer-against-dong-on-informal-market.html

 


Category: Finance, Vietnam

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