Central bank extends forex loan policyThe State Bank of Vietnam (SBV) has officially extended a policy allowing exporters to take loans in foreign currencies for another year instead of stopping it on December 31 as planned. He believes that the extension will not affect the Government’s anti-dollarisation policy as the nation’s foreign exchange is relatively stable. Moreover, the banks’ disbursement of foreign currency loans is in đồng, not the greenback.Echoing Hieu, expert Can Van Luc said the Government should pursue the anti-dollarisation policy but should not do so at all costs. It should fight against dollarisation but should still create favourable conditions to support firms, especially exporters, he added.SBV deputy governor Dao Minh Tu said it is only a short-term policy. For example, only firms with at least 50 per cent turnover in a foreign currency could be permitted to seek foreign-currency loans.

Source: VietNamNet News December 29, 2017 13:17 UTC