HSBC and Standard Chartered pioneer dong swaps
Dong interest-rate swaps create new hedging opportunities for Vietnamese market participants.
Vietnamese banks and corporates are set to benefit from the opening of the interbank market for interest-rate swaps now that HSBC and Standard Chartered have completed the first such trade.
The $3 million trade is a five-year swap, with HSBC paying a floating rate at the three-month Vietnamese interbank offered rate in exchange for receiving a fixed dong rate from Standard Chartered.
Vietnam's central bank paved the way for interest-rate and cross-currency swaps with a blanket approval in December 2006,...
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