SBV Continues Raising Exchange Rate Amplitude
The State Bank of Viet Nam (SBV) on August 19 decided to increase the amplitude of the exchange rate between the Vietnamese dong and the U.S. dollar to +/-3 percent from the current +/-2 percent.
Earlier on August 12, the trading band of VND/US$ was adjusted from +/-1 percent to +/-2 percent, which was considered as prompt and suitable solution just one day after China weakened its currency.
The SBV also announced that the average inter-bank VND/USD exchange rate will be increased by 1 percent to 21.890 from the current 21.673, applicable from August 19.
The dual decision was made to cope with unfavorable happenings in the international and domestic markets from now to the end of this year and early months of 2016 and to ensure the competitiveness of Vietnamese products.
The SBV said it will launch synchronously monetary policies, tools and measures, willing to sell foreign reserves to stabilize the foreign exchange market within the regulated band.
In response to the dual decision, commercial banks began listing new buying and selling rates. Vietcombank and BIDV listed the buying and selling rates at VND22.280 and VND22.380 per dollar, respectively, while Eximbank’s selling rate rose to VND 22.450 per dollar at 9am in the morning.
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