Vietnam curbs certain Credit Lyonnais forex trade
HANOI - Credit Lyonnais Vietnam said on Wednesday it had been suspended from conducting certain foreign exchange dealing for one month, a move the French bank called ``disproportionate.''
It said Vietnam's central bank had ordered the suspension after Credit Lyonnais broke rules governing margins on foreign exchange transactions.
In a statement, Credit Lyonnais did not elaborate on what type of transactions the suspension covered, but indicated it was unhappy with the move taken by the State Bank of Vietnam.
``Credit Lyonnais considers the sanction as disproportionate and is requesting a suspension of this sanction,'' it said.
Patrick Oberreiner, the bank's Vietnam general manager, in an earlier statement said:
``The suspension is for the amount of $2,298 and the central bank asked Credit Lyonnais to refund this $2,298 to customers regarding two separate forward foreign exchange transactions in February.''
Under current regulations banks must stick to a maximum margin of 0.1 percent on exchange transactions.
``The problem was with margins. On the difference between the buying and selling rate we are allowed to charge 0.1 percent but we charged about 15 dong more,'' Oberreiner added.
The extra charge was equivalent to the bank charging a margin close to 0.2 percent.
An official at the central bank's press department said the decision had been issued on Monday. Oberreiner said the first he knew of the suspension was in official Vietnamese and English-language newspapers on Wednesday, and it was not until late morning that the central bank formally notified him of the decision.
Credit Lyonnais said State Bank of Vietnam had performed various inspections on its operation. Bankers in Hanoi said the inspection of Credit Lyonnais was one of a number of surprise audits at foreign banks being undertaken.
One bank manager said inspectors were visiting banks to examine foreign exchange transactions over the last four months.
REUTERS News Service - March 11, 1998.
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