With the current low rate of inflation, the latest adjustment of the VND/USD exchange rate will have little impact on the goal of inflation control, a central bank official has said.

The State Bank of Vietnam (SBV) on June 18 announced that the VND/USD inter-bank exchange rate will increase by 1 percent as of June 19 after remaining intact for a year.

One USD is now equivalent to 21,246 VND, instead of 21,036 VND. The rate at banks can be 1 percent lower or higher than the interbank rate, ranging between 21,034 and 21,458 VND per 1 USD.

Director of the SBV’s Monetary Policy Department Nguyen Thi Hong said that in the context of low demand and absorbency of the economy, the adjustment will further stimulate export, which grew at a robust 15.4 percent in the first five months of this year, and support economic growth.

The adjustment will also help stabilise the forex market and ensure the legal demands for foreign currencies are met, she said.

She noted that at the beginning of the year, the SBV announced its directions for the monetary policy and banking activities, including the forex rate adjustment, giving plenty of time for businesses and credit institutions to plan their operations accordingly.-VNA