Thursday, August 17, 2017 - 4:43:32

Forex market will remain stable: top banker

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The State Bank of Vietnam (SBV) pledges to keep foreign exchange rates stable and is prepared to adjust the rates less than or equal to 2 percent, the bank’s Governor Nguyen Van Binh has said.

Foreign exchange rates rose in recent days and, sometimes approaching the ceiling levels stipulated by the SBV, mainly due to the market’s expectations of a foreign exchange rate adjustment conducted by the bank, Binh explained.

He said that although the domestic foreign exchange and gold markets have suffered after China’s illegal placement of its Haiyang Shiyou - 981 oil rig in Vietnam’s waters, the markets have swiftly improved thanks to strict measures and timely directions taken by the Government and the SBV.

As a result, the amount of deposits in foreign currencies in the whole banking system did not increase, but dropped while dong deposits continued to soar.

In the past nearly six months, the central bank has not made any adjustment of foreign exchange rates and they remain stable, the governor asserted, adding that his bank has no good reason to make the adjustment because the current supply and demand for foreign currencies are assured.

He said Vietnam has seen a surplus of more than 10 billion USD in balance of payment since the beginning of this year and 10 billion USD has been purchased by the central bank, and predicted that this year’s foreign currency supply and demand will be great.

To further boost exports and prevent an over-appreciation of the domestic currency, the SBV will consider an adjustment of exchange rates in an appropriate manner, the governor added.-VNA

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