The central bank this week cut the US dollar/đồng reference exchange rate by 16 đồng to VNĐ22,121 per dollar. - Photo vietq.vn

After a significant rise in the US dollar/dong reference exchange rate in the past few weeks, the central bank this week cut it by 16 dong to VND22,121 per dollar.

The đồng listed at commercial banks on Tuesday morning also continuously rallied against the dollar after making its first recovery last Friday, in the wake of the State Bank of Viet Nam’s affirmation to be ready to sell the dollar to intervene in the forex market.

As commercial banks are allowed to trade the dollar at +/-3% on either side of the reference rate, they can offer a rate between VND21,457 and VND22,785 on Tuesday.

On Tuesday morning, Vietcombank cut the buying and selling rates by 10 dong against Monday’s figures, to list the rate at VND22,650/VND22,750 per dollar.

The buying/selling rates at BIDV and Vietinbank were also down 10 dong to VNDĐ22,670/VND22.750.

Compared to late last week, the dollar listed at commercial banks weakened on Tuesday against the dong by 50-60 dong.

Commercial banks continue to maintain a gap of more than 100 dong per dollar for the buying and selling rates to minimise risks in case of sudden volatility in the domestic and global forex markets.

In the unofficial market, the dollar/dong exchange rate was quoted at VND22,810/VND22,830 for buying and selling at 9am Tuesday, unchanged against Monday.

Standard Charterted Bank last week released a note, expecting the đồng to further weaken on broader dollar strength next time.

The dollar/đồng exchange rate is projected to rise to VND22,900 in Q4/2016, VND23,000 in Q1/2017 and VND23,300 in Q4/2017, according to Standard Charterted Bank. — VNS