DAY-TO-DAY use of the United States dollar will be outlawed today in Vietnam in favour of the dong, sparking fears of a surging black market.
Foreign bankers were battling yesterday to calm nervous overseas investors fearful of losing dollar reserves and the smooth repatriation of profits.
Despite possible hiccups, the move is being seen as a vital step in the maturity of Vietnam's spartan monetary system.
Some investors are already stockpiling black-market dollars, should vital dong-to-dollar transactions prove difficult. There is no market for dong outside Vietnam.
'There has been a tremendous amount of confusion - and fear - all week, but now I think it should be pretty straight-forward,' one leading foreign banker said after talks with Vietnam's State Bank.
Prime Minister Vo Van Kiet announced an October 1 deadline to outlaw use of the greenback, but has left it up to the State Bank to implement.
The move is one of several geared to pulling in the estimated US$3 billion in gold, dollars and dong stuck outside the banking system in Vietnam after years of communism. Getting more money into the banks will allow more funds for loans and development.