Vietnam Limits Foreign Currency Loans to Curb Inflation

Vietnam’s central bank instructed banks to limit foreign currency loans as of May 6 as part of government efforts to curb inflation, according to a statement on its website today.

Credit institutions will be allowed to make short-, medium- and long-term foreign currency loans to businesses to settle import contracts, the State Bank of Vietnam said in the statement. In this case, companies will have to have foreign currency resources to repay banks, it said.