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BUSINESS IN BRIEF 27/3

Analysts call for royalty on sales in dollars of the Bank

Although DongA Bank and Eximbank have announced they will sell foreign exchange without charge to people going abroad to study or treatment, according to analysts with a tax mechanism is needed to balance supply and demand.

However, many believe the proposed maximum charge of about 2 percent is too high.

On Thursday, when he began selling, Donga Bank has sold nearly 16,400 dollars at the official rate of VND20, 895 a dollar and other currencies.

Eximbank, which began selling the same day, stated that the individual quota is $ 300 for a one-week trip, $ 600 for trips lasting a week, and $ 1,000 for patients the treatment will last more than a week.

For Vietnamese students abroad, the annual limit is $ 7,000.

Although the bank is willing to sell foreign currency, it has encouraged clients to use a card abroad instead of money for security, Dinh Thi Thu Thao, deputy director general of the bank, said in adding the bank pays approximately $ 500,000 per month for paying by card abroad.

But other banks said they should be allowed to levy a tax, because they must spend on insurance and other costs to buy foreign currency.

A head of the bank stated that the tax will allow banks to become stockbrokers official, putting the black market to companies.

Tran Phuong Binh, Director General of the Donga Bank, said since the fee for cash withdrawals using a credit card is 2.5 to 4 percent sales tax of foreign exchange must be 2 percent .

But analysts said, since tax of 2 percent will be price increases in dollars to VND21, 313 a tax of 1 percent or a flexible mechanism will be more appropriate.

Tran Hoang Ngan, a member of the National Advisory Council for Monetary and Financial Tuoi Tre said that the central bank should reduce costs and allow banks to set based on supply and demand.

Tran Du Lich, another board member, said Vietnam should follow other countries and impose a significant difference between the purchase and sale so that people only buy what they want.

Allow banks to charge the fee will create healthy competition, "he added.

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