>> Demand for foreign currency reveals need for stricter regulations
>> New policies to ease disparity in foreign currency market
>> Financial quandary: where to put your money?
>> More reasonable policies for gold market needed
Gold and foreign currency speculation has dropped after the government’s recent crackdown on unofficial trading.
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| Gold speculation seems to be on the decline |
In light of this trend, realty and securities traders expected that some money would flow into these channels. It has turned out not to be the case.
Nguyen Thi Ha from Giang Vo, Hanoi, is rather reticent to make new investment decisions even though she just earned VND2 billion (USD95,693) by selling a house worth nearly VND6 billion (USD287,081).
In order to obey Government\'s regulations, Ha’s decided not to put her assets on gold or foreign currency. After careful consideration, she had to go back to real estate rather than securities as for investment. But it is still a difficult decision because land prices are on the rise.
One banking official commented that there has been no effect on deposits to banks, for VND or USD, despite efforts to heighten liquidity. VND deposits tend to be short-term, with one month or less.
“There is still a large amount of unused money floating around. In spite of the slowdown in the realty market, people are still interested in land investment,” he added.
According to economist Cao Si Kiem, former Governor of the State Bank of Vietnam, the country should focus on curbing inflation in the short-term in order to to ensure stability and confidence in light of the Government’s recent measures.
“After inflation and economic slow-down, the national economy may rebound as soon as the end of June,” Kiem noted.
He remains optimistic about the economy, saying that the people can benefit from making deposits in VND for now, because the value of the VND will probably go up as soon as inflation is kept in control.
