The Vietnam dong is expected to fall to 25,600 VND per US dollar in the second quarter of 2024, and then to 24,800 VND in the final quarter of the year and 24,600 VND in the first quarter of next year, according to experts from the United Overseas Bank (UOB).
Experts warn it is important to develop measures to cope with risk in foreign exchange rates amid slow global economic recovery and geopolitical strife.
The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
The Vietnamese economy did recover in 2023, Dr. Can Van Luc affirmed, describing quarter-over-quarter growth, rebounded sectors, and impressive results in economic integration as three highlights last year.
As the governance of the monetary policy has to concurrently guarantee multiple targets, including reducing interest rates, expanding credit, stabilising foreign exchange rates, and ensuring credit institutions’ safety, thorough consideration is needed before any steps are taken, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.
Ho Chi Minh City’s credit growth has rebounded, growing by 3.65 percent as of the end of March, up 13.1 percent year-on-year, according to the State Bank of Vietnam’s HCM City branch.
A report by securities firm SSI on the financial and monetary market says deposit interest rates are likely to be cut by 0.5- 1 percentage point this year, and lending interest rates would also be cut by at least 0.5 percentage points as required by the Government.
Foreign exchange rates are likely to rise strongly due to concerns that the US-China trade war may be escalating, said Director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh.
Deputy Prime Minister Vuong Dinh Hue has asked the State Bank of Vietnam to actively and proactively direct monetary policy; closely combine with fiscal and macro-policies to control inflation; and prevent double inflation caused by higher foreign exchange rates and global fuel prices.
The State Bank of Vietnam (SBV) on January 7 announced the central rate for the Vietnam dong and the US dollar at 21,919 VND per USD, an increase of 12 VND compared to January 6.
The US FED’s decision to raise interest rates by 0.25 percentage points on early December 17 has not prompted the central bank to change its policy on stabilising foreign exchange rates
Vietnam's foreign exchange rates fluctuated greatly in the third quarter, influenced by global currency volatility resulting in a negative impact on earnings of many listed companies.
The National Financial Supervisory Commission (NFSC) has proposed that a close watch be kept on China's moves in its socio-economic policies in order to react in an appropriate manner.
