The State Bank of Vietnam (SBV) has recently adjusted the VND/USD exchange rate up by one percent. The adjustment has received a positive response and boosted confidence, the Vietnam Economic News reported.
The average interbank exchange rate was adjusted to increase from 21,036 VND to 21,246 VND per USD. Together with exchange rate adjustment, ceiling and floor levels reach 21,458 VND and 21,034 VND per USD, respectively.
SBV decided to adjust exchange rate after carefully considering macroeconomic factors. According to SBV’s Monetary Policy Department Director Nguyen Thi Hong, since the beginning of this year, macroeconomics, monetary market and banking activities have made positive developments.
Inflation has been curbed at a low level, while the consumer price index (CPI) just increased by 0.2 percent in May compared to April or an increase of 1.08 percent compared to December 2013. In particular, foreign exchange market has been guaranteed.
“In the context of controlled CPI at a low level in the first five months of this year and stable exchange rate for nearly a year, exchange rate adjustment will contribute to promoting exports and supporting economic growth,” Hong was quoted as saying.
In addition to macroeconomic factors, the stable situation in the monetary and foreign exchange market has made an adjustment. According to SBV, in the first five months of this year, trade surplus totaled 1.6 billion USD and overall balance of payment surplus reached more than 10 billion USD. In particular, foreign exchange reserves reached a record of 35 billion USD.
Central Institute for Economic Management (CIEM) Deputy Director, Dr. Vo Tri Thanh said that the transparency of information on the overall balance of payments and foreign exchange reserves had helped create a trust for the market, contributing to reinforcing the value of the VND.
He also added that signs of stress on the foreign exchange market were often expressed by the difference between the exchange rate on the free market and banks. However, by tracking actual transactions after exchange rate adjustment, there were no signs of stress on the foreign exchange market.
SBV will implement measures and tools to stabilise the exchange rate and the foreign exchange market. While inflation is controlled at a low level, decision on exchange rate adjustment will contribute to promoting exports and supporting economic growth in the second half of this year.
SBV Governor Nguyen Van Binh said that exchange rate adjustment would not exceed two percent. Many suggestions showed that the exchange rate would continue to be adjusted in the remaining months of this year. However, Vo Tri Thanh said that if exports face to difficulties, SBV will continue to adjust the exchange rate and the possibility of exchange rate adjustment to two percent will reach about 40 percent.
SBV will continue to flexibly operate monetary policy and closely coordinate with fiscal policy to control inflation, stabilise macroeconomics and support economic growth at a reasonable level, contributing to ensuring safety for credit institutions. Nguyen Thi Hong said that SBV will adopt appropriate measures, policies and tools to achieve set goals.-VNA
The average interbank exchange rate was adjusted to increase from 21,036 VND to 21,246 VND per USD. Together with exchange rate adjustment, ceiling and floor levels reach 21,458 VND and 21,034 VND per USD, respectively.
SBV decided to adjust exchange rate after carefully considering macroeconomic factors. According to SBV’s Monetary Policy Department Director Nguyen Thi Hong, since the beginning of this year, macroeconomics, monetary market and banking activities have made positive developments.
Inflation has been curbed at a low level, while the consumer price index (CPI) just increased by 0.2 percent in May compared to April or an increase of 1.08 percent compared to December 2013. In particular, foreign exchange market has been guaranteed.
“In the context of controlled CPI at a low level in the first five months of this year and stable exchange rate for nearly a year, exchange rate adjustment will contribute to promoting exports and supporting economic growth,” Hong was quoted as saying.
In addition to macroeconomic factors, the stable situation in the monetary and foreign exchange market has made an adjustment. According to SBV, in the first five months of this year, trade surplus totaled 1.6 billion USD and overall balance of payment surplus reached more than 10 billion USD. In particular, foreign exchange reserves reached a record of 35 billion USD.
Central Institute for Economic Management (CIEM) Deputy Director, Dr. Vo Tri Thanh said that the transparency of information on the overall balance of payments and foreign exchange reserves had helped create a trust for the market, contributing to reinforcing the value of the VND.
He also added that signs of stress on the foreign exchange market were often expressed by the difference between the exchange rate on the free market and banks. However, by tracking actual transactions after exchange rate adjustment, there were no signs of stress on the foreign exchange market.
SBV will implement measures and tools to stabilise the exchange rate and the foreign exchange market. While inflation is controlled at a low level, decision on exchange rate adjustment will contribute to promoting exports and supporting economic growth in the second half of this year.
SBV Governor Nguyen Van Binh said that exchange rate adjustment would not exceed two percent. Many suggestions showed that the exchange rate would continue to be adjusted in the remaining months of this year. However, Vo Tri Thanh said that if exports face to difficulties, SBV will continue to adjust the exchange rate and the possibility of exchange rate adjustment to two percent will reach about 40 percent.
SBV will continue to flexibly operate monetary policy and closely coordinate with fiscal policy to control inflation, stabilise macroeconomics and support economic growth at a reasonable level, contributing to ensuring safety for credit institutions. Nguyen Thi Hong said that SBV will adopt appropriate measures, policies and tools to achieve set goals.-VNA
