The increase of inter-bank exchangerate from 17.941 to 18.544 VND per USD from February 11 is aimed atbalancing the foreign currency demand and supply, helping control tradedeficit and stabilise the macro economy, according to the State Bank ofVietnam (SBV).
The SBV’s decision has received concurrence and support from many economic and banking experts.
Dr. Tran Huy Hoang, Dean of the Banking Department of the Ho Chi MinhCity Economics University , said that the adjustment is indispensableto help the foreign exchange market avoid the two-price phenomenon.
In addition, this move also helps commercial banks buy more US dollars,thereby increasing supplies for export activities and stabilise theforeign exchange market, he said.
Hoang, however, admitted that import businesses will face difficultiesas they must spend more buying US dollars for payment.
Meanwhile, Vice Rector of the Ho Chi Minh City Banking University Dr.Ho Dieu said that the best things the economy gets from the exchangerate increase are encouraging exports and limiting trade deficit, thushelping the trade balance reach a state that is profitable forstabilising the macro economy.
BaoViet Bank and ABBank leaders also agreed with the above-mentionedassessments and forecast that banks’ USD exchanging activities willbecome busier in the future.
Just on the first day of the adjustment (Feb. 11), almost allcommercial banks increased their VND/USD buying-selling rates at around18,600-19,000 VND per USD for buying and 19,000-19,100 VND per USD forselling.
On the black market, the price of US dollar also increased followingcommercial banks, at around 19,500-19,600 VND per USD, up 300-400 VNDcompared to Feb. 10./.
The SBV’s decision has received concurrence and support from many economic and banking experts.
Dr. Tran Huy Hoang, Dean of the Banking Department of the Ho Chi MinhCity Economics University , said that the adjustment is indispensableto help the foreign exchange market avoid the two-price phenomenon.
In addition, this move also helps commercial banks buy more US dollars,thereby increasing supplies for export activities and stabilise theforeign exchange market, he said.
Hoang, however, admitted that import businesses will face difficultiesas they must spend more buying US dollars for payment.
Meanwhile, Vice Rector of the Ho Chi Minh City Banking University Dr.Ho Dieu said that the best things the economy gets from the exchangerate increase are encouraging exports and limiting trade deficit, thushelping the trade balance reach a state that is profitable forstabilising the macro economy.
BaoViet Bank and ABBank leaders also agreed with the above-mentionedassessments and forecast that banks’ USD exchanging activities willbecome busier in the future.
Just on the first day of the adjustment (Feb. 11), almost allcommercial banks increased their VND/USD buying-selling rates at around18,600-19,000 VND per USD for buying and 19,000-19,100 VND per USD forselling.
On the black market, the price of US dollar also increased followingcommercial banks, at around 19,500-19,600 VND per USD, up 300-400 VNDcompared to Feb. 10./.
