The rate cut could facilitate monetary loosening and improve lending to prioritized sectors including agriculture and export, BIDV’s research center said in a recent report.
In the report, the bank forecast the Vietnam dong-U.S. dollar exchange rate at VND21,890 by the end of 2015 with a trade deficit at around US$8.3 billion.
In the first quarter, banks could meet all legitimate foreign currency demands of organizations and individuals. However, it was notable that the greenback appreciated by 14% against other hard currencies while the State Bank of Vietnam (SBV) has devalued the dong by only 1% since early this year.
Therefore, the dong actually has appreciated by 13% versus the euro, putting pressure on the local currency in the coming time.
If the U.S. Federal Reserve (Fed) hikes interest rates in the first half of this year, the dollar will continue strengthening against the euro and Japanese yen. The SBV is likely to raise the dong-U.S. dollar exchange rate by another 1% at the end of the second quarter, instead of the year-end to support exporters.
Though the central bank has pledged to keep exchange rate fluctuations at below 2%, the agency can still make policy decisions depending on market movements. It is not necessary to maintain the forex rate fluctuation as earlier announced, the report said.
BIDV in talks to pick strategic investors
* BIDV said it is in negotiations with seven to eight foreign investors so that it can pick strategic shareholders by year-end or next year.
BIDV will issue additional shares for strategic investors, keeping the combined foreign ownership at lower than 30% of its chartered capital. Both sides will discuss share prices, BIDV chairman Tran Bac Ha said on April 14.
BIDV plans to sell a 25% stake to foreign investors, including 15% to a foreign strategic partner and 10% to a foreign finance investor, Ha was quoted by news site VnExpress as saying.
BIDV is the second biggest commercial bank by chartered capital with over VND28.1 trillion (US$1.3 billion). The State holds a 95.76% stake at this lender.
BIDV obtained over VND1.8 trillion in pre-tax profit in the first quarter of 2015, rising 2% year-on-year and meeting 24.5% of this year’s target. Its outstanding loans had totaled over VND481 trillion at the end of March, up 4.34% against early this year, with bad debt accounting for 2.1%.
Đăng ký: VietNam News