Rate cuts halt EUR/USD fall

Over the past few days, the euro has finally broken out of its weeks-long slump against the dollar. Federal Reserve Chairman Ben Bernanke announced on Tuesday that the Fed would be taking the unprecedented act of buying three-month commercial paper, and today, central banks around the world made coordinated reductions in the target lending rate. Anticipating an easing of the credit squeeze that has driven the dollar’s recent rise against the euro, traders sold USD and bought EUR in today’s forex trading. As of 4PM EST, the euro had made its biggest gain against the dollar in more than two weeks, moving from 1.3585 yesterday to 1.3658.

November 19th, 2008 | Comments Off on Rate cuts halt EUR/USD fall

Vietnam Real Estate Market

At a seminar in Hanoi last week, banking officials said the real estate market’s stagnation has increased the risk of default by developers, most of them are not strong enough financially. They said more bad loans would surface if the market continued its stagnancy. It is estimated that 60% of the capital for real estate development comes from loans.

Figures from commercial banks show that the loans made up 10% of total lending last year, equivalent to VND50 trillion. Bad loans made up about 2%. Loans for the property sector in HCM City are estimated at VND25 trillion and Hanoi VND9 trillion. The central bank has recently issued an instruction asking commercial banks to assess their property lending to make sure they could get back their money on time. The central bank’s local branches in provinces and cities must closely watch real estate development to warn credit organizations of default risk in time. Central bank warns about property loans. The State Bank of Vietnam has issued a warning against property lending, which makes up a large share of total lending in the banking system.

November 15th, 2008 | Comments Off on Vietnam Real Estate Market

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