The greenback rates reach SBV's ceiling price on May 5.— Photo baomoi.com

HA NOI (Biz Hub) — The greenback rates in An Binh Bank (ABB) and Asia Commerical Bank (ACB) reached the central bank's ceiling price on May 5, when the rates in the local market soared.

After a long holiday season in Viet Nam from April 28 to May 3, most banks added 20 to 35 dong in the greenback rates.

On May 5, ABB and ACB sold their dollar at VND21,673 each, while the other banks sold for VND21,670.

On the buying side, the rate in Vietcombank, ACB, Eximbank, and BIDV was VND21,610. At the same time, Vietinbank bought the dollar for VND21,630, while Techcombank listed the buying rate at VND21,590.

Rates in flea markets were similar to those in the local commercial banks. Quoc Trinh Gold and Jewellery Company on Ha Trung Street, one of the most popular money exchange markets in the capital city, bought the dollar for VND21,640 and sold for VND21,670 on the same day.

The State Bank of Viet Nam (SBV) has yet to react on the move in the local market.

As of January 7, the SBV had increased the inter-bank exchange rate from VND21,246 to VND21,458 per dollar. With an effective exchange rate with a one-per cent margin, the ceiling rate was VND21,673 per dollar.

Earlier in April, the SBV repeatedly confirmed to the local media that the supply and demand for foreign currency was stable and that speculation by local investors had led to a rise in rates.

Meanwhile, the central bank has confirmed that the rates will not be increased any further for now, and that the bank plans to increase the VND/USD exchange rate by no more than two per cent in 2015.

Reuters.com reported that the dollar rose for a second straight session in thin trading, after data suggesting that the US economy might be stabilizing following a soft patch in the first quarter that helped the dollar recover from a two-week drop. — VNS