Domestic interest rate differences - foreign currency is large
As reported by the Bank (NH) State, up to 20.6, while credit rose only 2.67% USD, the credit against foreign currencies increased to over 23% in 2010. In Vietnam, the total outstanding loans in the province is estimated to end in July reached 758,000 billion, up 7% over the year, foreign currency loans reached 230.3 trillion VND, up 32.6% and the balance USD 19.2% increase over the same period in 2010. The main reason for this is that the interest rate difference between the VND and foreign currencies is too large. In the second week in July last, the central bank interest rates VND per field of production and business of commercial banks from 18% -21%, 22-25% of non-productive. Meanwhile, the USD interest rates prevalent in the 6% -7.5% short term and 7.5% - 8% medium and long term. According to Mr. Phan Dao Vu - General Director of Bao Vietnamese joint stock banks, at the present time if the borrowers themselves, he would certainly choose USD by "the interest rate difference between the two currencies is too large. Along with the move to control the exchange rate stable, or if changes are not too large as the visible benefits everyone "- he said.


USD price difference is too large
However, Mr Vu said that, should carefully calculate the USD loans if the lending trend remains as last time will cause pressure on businesses to buy dollars to repay when the loan matures . "State Bank forecast the balance of payments can be $ 1 billion surplus, but the trend of trade deficit remains high, demand for U.S. dollar loans is increasing rapidly, the future U.S. dollars to meet enterprise repayment will be how it was a big question mark, "he added.

A leading commercial joint stock bank said that large, managers now have to be calculated, considering the ability to control, balance supply and demand - USD. For, although the State Bank increased the rate of compulsory reserves in foreign currencies (increased cost of foreign currency loans), provides loans to foreign companies to have revenues to pay debt, make a written commitment to sell other banks' foreign currency should lead to psychological banks also think that buying foreign currency market should not be difficult willing to commit for selling to businesses. This is the reason, businesses and banks are still indifferent handling and comfort each other commitments
Not comfortable with the exchange rate

Deputy general manager of a commercial bank for people to sell foreign currency to the bank recently increased, as time deposits has slowed growth in the last few days, however, focused stock commercial banks, because banks are willing to pay higher interest rates prescribed 2% from the State Bank. "There must be provision for, the bank lost balance and loan funds, they must calculate how to harmonize the most beneficial and can not sit still is" - you said and expressed concern , when the contract expires and the borrower's commitment to a number of banks will become more difficult, by source of foreign currency for a massive return, while the trade deficit, trade deficit is still weighing on the balance of payments. "The trade deficit in June and 7 were both significantly reduced only USD 160 million and $ 200 million compared with $ 1 billion over the previous few months. But this is not what can be optimistic, because the practice of re-export of gold has two months to $ 1.6 billion. So the gold market will change how the world gold price is a big difference to the domestic price of gold, gold production has sufficient resources to continuously reduce the trade deficit or not "- Deputy Director of the question, and share the world's largest 100% of businesses are required to use the tools hedging exchange rate, are charged to expenses and costs when building the business problem. "Vietnam business is difficult to believe that exchange rate volatility, but also can not use the insurance to avoid exchange rate risks that could happen years ago" - you said.
As leaders of the capital and business capital of BIDV, which are sensitive to exchange rate policy of the State of the bank, just a move to change the exchange rate will cause volatility. That time, beliefs and policies have only been restored a little. Previously, assessment of Vietnam's economy, Standard Chartered Bank, also worried by the policies of the exchange rate is not as desired by the State Bank has two times lower price when compared with VND USD immediately after the declaration of commitment to stable
According to Vietnamnet
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