The increase of inter-bank exchange rate from 17.941 to 18.544 VND per USD from February 11 is aimed at balancing the foreign currency demand and supply, helping control trade deficit and stabilise the macro economy, according to the State Bank of Vietnam (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 Minh City Economics University , said that the adjustment is indispensable to 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 the foreign exchange market, he said.
Hoang, however, admitted that import businesses will face difficulties as 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 exchange rate increase are encouraging exports and limiting trade deficit, thus helping the trade balance reach a state that is profitable for stabilising the macro economy.
BaoViet Bank and ABBank leaders also agreed with the above-mentioned assessments and forecast that banks’ USD exchanging activities will become busier in the future.
Just on the first day of the adjustment (Feb. 11), almost all commercial banks increased their VND/USD buying-selling rates at around 18,600-19,000 VND per USD for buying and 19,000-19,100 VND per USD for selling.
On the black market, the price of US dollar also increased following commercial banks, at around 19,500-19,600 VND per USD, up 300-400 VND compared 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 Minh City Economics University , said that the adjustment is indispensable to 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 the foreign exchange market, he said.
Hoang, however, admitted that import businesses will face difficulties as 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 exchange rate increase are encouraging exports and limiting trade deficit, thus helping the trade balance reach a state that is profitable for stabilising the macro economy.
BaoViet Bank and ABBank leaders also agreed with the above-mentioned assessments and forecast that banks’ USD exchanging activities will become busier in the future.
Just on the first day of the adjustment (Feb. 11), almost all commercial banks increased their VND/USD buying-selling rates at around 18,600-19,000 VND per USD for buying and 19,000-19,100 VND per USD for selling.
On the black market, the price of US dollar also increased following commercial banks, at around 19,500-19,600 VND per USD, up 300-400 VND compared to Feb. 10./.
