Vietnam to get Telerate system

Vietnam to get Telerate system

HANOI (Reuter): The State Bank of Vietnam is to sign a deal today with U.S. firm Dow Jones/Telerate for a domestic dealing system for the Southeast Asian country's nascent foreign exchange interbank market.

The on-screen system, which allows for both communications and business transactions, will be used by members of the foreign exchange interbank market in Vietnam, a Dow Jones/Telerate executive said on Saturday.

"We are very pleased we've been able to get the confidence of the State Bank and we're looking forward to supporting Vietnam's future development in the banking sector," said Wong Quai Chin, sales manager for Dow Jones/Telerate in Hanoi.

A similar Dow Jones/Telerate system has been operating for the last three years in the Philippines.

An official at the State Bank, Le Duc Cu, said Vietnam's State Bank was looking at other systems for international dealing.

"It's very simple. It's for the local bank market. At present the volume of transactions is not so big. But we also have other systems such as Reuters."

The State Bank said the system would initially be used for fixed format spot foreign exchange deals.

It will be upgraded at a later stage to support the trading of debt instruments such as treasury bills, inter-bank money market transactions, and forward transactions.