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| The central bank confirms no more lift on the VND/USD rate in 2015.— Photo thesaigontimes.vn |
HA NOI (Biz Hub) — Dollar rates fell in all local commercial banks on May 27, after the State Bank of Viet Nam (SBV) said it would not lift the rate this year.
On Wednesday, local commercial banks listed the US dollar VND20 to VND30 lower than the rate two days ago.
Vietcombank's buying and selling rates for each dollar were VND21,770 and VND21,830, respectively.
ACB and Eximbank sold the dollar for VND21,830 and bought it for 21,750 respectively.
The dollar buying and selling rates in Techcombank were VND21,760 and VND21,845, while in VietinBank, it was VND21,770 and VND21,840, in Agribank VND21,770 and VND21,845 and in DongABank VND21,750 and VND21,840, respectively,
The rates fell to similar levels in the street markets too. Most money exchangers on Ha Trung Street, one of the most popular spots for currency exchange in Ha Noi, bought the dollar for VND21,800 and sold it for VND21,830.
As of May 7, the SBV had increased the inter-bank exchange rate from VND21,458 to VND 21,673 per US dollar. With an effective one per cent margin, the ceiling rate was VND21,890 per dollar.
The central bank announced that it would lift the dollar/dong rate to a maximum two per cent in 2015. Thus, in the first five months of this year, the central bank raised the dollar/dong rate to the highest level it has so far committed to.
Since that date, the greenback rates fluctuated fast. Two days ago, the rates approached the ceiling prices in commercial banks and the flea market.
On May 27, Deputy Governor Nguyen Thi Hong said the central bank was willing to sell foreign currency as a market intervention mechanism.
While banking and finance experts forecast that SBV would give more room for the rate, Hong said the bank would keep its commitment of not allowing the rate to exceed two per cent in 2015.
The deputy governor said commercial banks still remained the net buyers of foreign currencies in the market.
Hong said any more adjustment of the rate would increase the foreign debt obligations of the government and affect the control of public debt, which was close to 65 per cent of the GDP.
Hong said though the current level of inflation was under control, they could not be subjective because the oil prices could rebound.
The deputy governor said SBV has increased the exchange rate continuously over the years, even when the dollar fell in the international market. The highest level of adjustment of 9.3 per cent was seen in 2011, and then it was lifted by one or two per cent per year.
Hong said an IMF study had shown that the VND/ USD rate was still within the appropriate limits, with no signs that it was being misjudged.
Reuters.com said the dollar made broad gains early on Wednesday, having rallied to an eight-year high against the yen, after a batch of upbeat data bolstered the case for an interest rate hike in the United States this year.— VNS