Financial Regulatory Forum

Vietnam c.bank bans fees in dollar transactions

July 1, 2009

   HANOI, July 1 (Reuters) – Vietnam’s central bank on Wednesday banned all banks from charging fees and commissions on dollar/dong transactions, as part of efforts to curb dollar sales outside the trading band.
   Banks are allowed to buy and sell the U.S. dollar within a trading band of +/-5 percent around a mid-point rate set each day by the central bank.
   But many have been adding extra fees on transactions, effectively making the exchange rate equivalent to those used on the black markets, State Bank Governor Nguyen Van Giau said in a directive signed on Wednesday.
   At 0153 GMT the dong was being traded on the interbank market at the bottom limit of Wednesday’s mid-point of 16,954 dong to a dollar at 17,801-17,802, Reuters data showed.
   Meanwhile, the currency was being traded at 18,370 dong to a dollar at gold shops in Hanoi where residents buy and sell the greenback, dealers said.

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