3:22:19 PM | 17/9/2008
The State Bank of Vietnam, the country’s central bank, has said it is buying foreign currencies to stabilize exchange rate ahead increasing supply of dollars.
After a period when the demand for dollars exceeded the supply, they have become balanced from mid July and now there are signals of abundant supply, the central bank said.
Foreign exchange rate, which has ever hit to the peak of over VND19,000/USD with deposit rate above 8 per cent per annum, now falls below VND17,000/USD with deposit rate below 6 per cent a year.
The rate are now fluctuating around VND16,600/USD in commercial banks and VND16,600-VND16,620/USD in free market.
Forex market is expected to remain stable till the end of this year because supply of dollar is increasing while demand is slowing down.
The central bank’s Forex Management Department forecast the overseas remittance may reach US$8 billion in 2008 (including US$3.5 billion in the first half), increasing 60 per cent from 2007. (Vietnamnet)
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