The State Bank of Viet Nam (SBV) set the daily reference exchange rate for the US dollar at 23,703 VND/USD on Tuesday, up VND3 from the previous day and the highest rise in many years.

The central exchange rate had the 13th consecutive increase with a total increase of VND286.

With the current trading band of +/-5 per cent, the ceiling rate applicable to commercial banks during the day is 24,888 VND/USD and the floor rate 22,517 VND/USD.

The opening-hour rates at commercial banks increased slightly.

At 8:35 am on Tuesday, BIDV listed the buying rate at 24,608 VND/USD and the selling rate at 24,888 VND/USD, both up VND3 from Monday.

Vietcombank kept both rates unchanged at 24,575 VND/USD (buying) and the selling rate at 24,885 VND/USD (selling).

Meanwhile, the black market rate spiked this morning. Specifically, on the free market, the buying price of USD increased by VND80, the selling price increased by VND100, trading at 25,100 - 25,220 VND/USD.

Central bank revises up interest rates by 1 per cent from October 25

The central bank on Monday also decided to revise up several interest rates by 1 per cent, starting from October 25. This move aimed to continue implementing synchronous measures, contributing to controlling inflation, stabilising the macro-economy and currency, and ensuring the safety of the banking system.

This was the SBV’s second interest rate hike within a month.

Accordingly, the refinancing interest rate will be set at 6 per cent per year, rediscount at 4.5 per cent, and overnight inter-banking lending rate at 7 per cent.

The maximum interest rate for non-term and one-month deposits in Vietnamese dong is capped at 1 per cent annually and that for 1-6 month deposits, 6 per cent.

Deposits of 1-6 months at people’s credit funds and micro-finance organisations will enjoy an annual interest rate of 6.5 per cent.

Meanwhile, the maximum short-term lending interest rate in Vietnamese dong at credit institutions for the capital demand for a number of economic sectors increased to 5.5 per cent, and those at people’s credit funds and micro-finance organisations to 6.5 per cent.

The SBV will closely monitor domestic and international market developments to promptly, flexibly and synchronously administer monetary policy solutions and tools. The central bank would be ready to intervene in the currency and foreign exchange markets to meet the liquidity needs of credit institutions; thereby contributing to stabilising the market and ensuring the operational safety of the banking system. — VNS