Vietnam cancels forex ban

Vietnam cancels forex ban

HANOI (AFP): Hanoi appears to have backtracked on plans to impose restrictions on foreign exchange sales to foreign companies, it was reported on Friday.

Following a chorus of complaints from the foreign business community, the government decided to maintain its current policy rather than impose a ban as suggested earlier by the State Bank of Vietnam, the Saigon Times Daily reported.

"Deputy Prime Minister Phan Van Khai said that...foreign currency exchange for foreign-invested enterprises should be done according to existing regulations," the paper reported.

The deputy prime minister also said the government had instructed the State Bank of Vietnam to a new foreign exchange management system so that businesses would only use dong in local transactions.

Dollars are currently widely circulated in Vietnam.