The revision of the USD selling price up to 23,273 VND on July 23 is said to be a move suitable with domestic and foreign markets (Photo: LienVietPostBank)

Hanoi (VNA) – The State Bank of Vietnam (SBV)’s revision of the USD selling price up to 23,273 VND on July 23, a strong increase from the rate it had kept from the month’s beginning, is a move suitable with domestic and foreign markets, an SBV official said.

Pham Thanh Ha, Director of the SBV’s Monetary Policy Department, said after the SBV slashed the USD selling price to 23,050 VND on July 3, the exchange rate became relatively stable, mainly around 23,040 – 23,050 VND per USD.

The central bank has sold the greenback to credit organisations with short foreign currency position to supply more USD for the market. It has also used other monetary policy tools to stabilise the exchange rate and satisfy demand for the foreign currency.

He said that the SBV’s intervention to cut the USD selling price to 23,050 VND has helped stabilise the exchange rate and the forex market.

The selling price revision up to 23,273 VND on July 23 aimed to better align the exchange rate with movements in the domestic and global markets. It was also meant to show that the SBV is ready to support the market with a reasonable exchange rate, Ha noted.

On July 23, the reference exchange rate was set at 22,644 VND, down 16 VND from July 20. With the current trading band of  +/- 3 percent, the ceiling rate applied to commercial banks during the day was 23,323 VND/USD and the floor rate 21,965 VND/USD.

The same day, the SBV Operations Centre listed the USD prices at 22,700 VND (buying) – 23,273 VND (selling), up 223 VND from the prices it announced on July 3.

Ha said the central bank will maintain a monetary policy helping control inflation and stabilising the macro-economy.

It will continue adjusting the exchange rate in a flexible manner and in accordance with domestic and foreign markets. It will also make use of other tools and be ready to sell the USD when necessary to stabilise the forex market.-VNA