Vietnam’s central bank has urged lenders to reduce providing dollar loans to importers and certain exporters to stabilize the economy and curb inflation, Reuters reports. The State Bank of Vietnam has requested banks to make sure that only short-term funding is extended to exporters, while importers can avail all types of loans.
The new rules will be effective from May 9, 2011. The central bank is also planning to submit an “anti-dollarization” plan to the National Financial and Monetary Policies Advisory Council and the government next month. The plan may include altering the dollar reserve requirements and monitoring gold trading.
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