Gold, USD prices spike

Illustrative image (Photo:Reuters)

Commercial banks altogether spiked the US dollar price after the State Bank of Vietnam (SBV) increased the average inter-bank exchange rate between the Vietnamese dong (VND) and the USD.

The SBV raised the inter-bank exchange rate between the two currencies on August 19 from 21,673 to 21,890 VND per one USD (one percent increase). The bank also adjusted the exchange rate amplitude from +/-2 percent to +/- 3 percent.

With the adjustments, the ceiling exchange rate is 22,547 VND per dollar and the floor rate is 21,233 VND per dollar.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has posted its US dollar buying and selling prices at 22,300-22,400 VND while the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is transacting at 22,200-22,480 VND per one USD.

The Bank for the Investment and Development of Vietnam (BIDV) set the buying and selling rates at 22,350-22,480 VND per one USD and the rates at Vietnam Export Import Commercial Joint Stock Bank (Emximbank) were 22,330-22,480 VND per one USD.

According to the SBV, after China devaluated its currency, the domestic market is concerned over the impact of the US Federal Reserve (FED)’s possible increase of interest rates.

Following the SBV’s adjustment in the exchange rate, gold prices rose above 35 million VND/ ounce (1,666 USD) but shortly after that fell to 33.9 million VND (1,614 USD) – 34.6 million VND (1,647 USD) per ounce (buying–selling). These prices are still higher than the levels in the previous day by 50,000 VND (buying) and 45,000 VND (selling).

On the contrary, the gold price dropped on the international market on August 19.-VNA