SBV will take all measures to fight with the dollar hoarding in the local market. —  Photo baomoi.com

HA NOI (Biz Hub) — The exchange rate between the Vietnamese dong and US dollar saw a sharp drop in local commercial banks following news of the central bank's possible new forex policy.

Last week, Governor of the State Bank of Viet Nam, Nguyen Van Binh, told the local media that the bank will carry out measures to assure that there will be no hoarding of dollars in the economy.

Binh said the central bank was taking steps to apply a new management mechanism to the interbank trading band, which determines the official dollar/dong exchange rate, adding that the bank could consider frequently changing the interbank rate, even on a daily basis.

On December 18, the bank slashed the dollar deposit rates to 0 per cent for both organizations and companies in Viet Nam. Binh added that in the future the bank could even charge lenders for dollars they deposit in banks.

As a result, on December 28 commercial banks continually adjusted their exchanges rates, with a reduction ranging between VND10 to VND80.

Vietcombank, ending the day, cut the rate by VND30 against Saturday, quoting the buying-selling rates at VND22,440/22,510.

Also, Techcombank reduced their rate as much as 80 dong on the buying side, buying the greenback at VND22,380 and sold dollars at VND22,510, down 17 dong from their Saturday rate.

Further, DongABank reduced their rate to 50/17, posting a buying-selling rate for the dollar at VND22,430-VND22,510.

Additionally, compared to Saturday's rates, the buying-selling rates at Vietinbank were VND22,435/22,515, which was as much as the reduction of VND25 for both sides. Reducing 5 dong each side, the rates were VND22,460/22,530 at BIDV.

Buying and selling rates at ACB and Eximbank were set at VND22,440 and VND22,530.

However, rates in the unofficial market were not changed that significantly. In Quoc Trinh Jewelry Company in Ha Trung Street, the most popular point for forex trading in Ha Noi, greenbacks were bought at VND22,620 and sold at VND22,660. —VNS