Greenback, gold prices soar as China devalues
The greenback rates soared in the flea market and touched a new ceiling price in commercial banks on August 13 as China devalued its currency for the third time in three days.
The greenback rates soared in the flea market and touched a new ceiling price in commercial banks on August 13 over China's yuan devaluation. Photo: magicwave.com.vnThe greenback rates soared in the flea market and touched a new ceiling price in commercial banks on August 13 as China devalued its currency for the third time in three days.
Most money exchangers on Ha Trung street, one of the most popular spots for money exchange in Hanoi, on August 13 sold a US dollar for a sum between 22,200 VND and 22,300 VND, as much as 100-200 dong higher than the ceiling price.
The Technological Commercial Bank (Techcombank) and Asia Commercial Bank (ACB) rated US dollar at the ceiling pieces of 22,106 VND while the DongABank, VietinBank, Vietcombank and BIDV listed their selling prices at 22,105 VND, one dong lower.
A day earlier, the State Bank of Vietnam (SBV) lifted the margin of the fixed rate for the greenback from 1 percent to 2 percent. The dong's fix, or the inter-bank exchange rate, remains unchanged at 21,673 VND per US dollar while the ceiling rate was 22,106 VND per dollar.
The judgment came as China devalued reference rate of yuan by 1.9 percent on August 11, and again by 1.62 percent on August 12 and another 1.1 percent on August 13.
Nguyen Thi Hong, Deputy Governor of SBV said on the bank website that the adjustment was to deal with the negative impact in the global market caused many unexpected factors including the sudden devaluation of the Chinese yuan in the last two decades. She confirmed the bank would maintain a close supervision in the forex market for a possible intervention.
Gold prices on August 13 climbed too. Gold prices rallied another 1.08 million VND (48.8 USD) per tael in the market. Each tael of the State-owned SJC gold was listed at 34.8 million VND (1,574 USD).
A representative from Phu Nhuan Jewellery JSC said the price rise was mostly caused by the Chinese devaluation and the local central bank's wider margin of the greenback. He added that the company did not see an increasing demand for gold within the day.
On the global gold trading floor, kitco.com, one ounce of gold was traded at 1,117.40 USD per ounce or 1,346 USD per tael.
On the same day, reuters.com reported that gold edged higher, supported by the retreating US dollar and a tumble in global equities as traders awaited US employment data, seen as the key to determine when the Federal Reserve may hike interest rate.
Thus, the gap between local gold prices and the international prices was 228 USD on August 13.-VNA
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