The State Bank of Vietnam on Oct. 26 raised the interbank exchangerate by 20 VND to 20,768 VND per dollar, its highest level this year.
It was the 12th increase since October 5.
The interbank dollar exchange rate has advanced 140 VND per dollar, or0.68 percent, over the past two months since the central bank committedto keeping fluctuation under 1 percent until the end of this year.Therefore, to meet its pledge, the dollar exchange rate will be allowedto surge 0.32 percent or by 66 VND.
At commercial banks,dollar exchange rates on Oct. 26 listed higher than 20,970 VND, up 21VND over the previous day. Vietcombank and Vietinbank quoted thegreenback at 20,971/20,976 VND while Eximbank and ACB figures were20,953/20,963 VND.
Experts said that the foreign exchangemarket will likely experience tension at the end of the year when demandfor US dollars increased due to rising imports and repayment of foreigncurrency loans.
However, vice chairman of the NationalFinancial Supervisory Commission, Le Xuan Nghia told Tuoi Tre (Youth)newspaper that the Government will indeed be able to keep ratefluctuation under 1 percent.
Nghia explained that balanceof payments is expected to see a surplus of 4-5 billion USD this year,the first since 2007. The country's foreign exchange reserves are alsoestimated to be equal to 7.5 weeks of import cover compared to 3.5 weeksearlier this year, higher than that expected by the National FinancialSupervisory Commission.
He said that capital accounts currently enjoy a surplus of around 9 billion USD, alongside positive remittance.
While the Government fights inflation, it cannot let the exchange rate rise as sharply as during previous years, he noted.
Nghia explained that one of the factors which have pressurised exchangerates during recent days include foreign currency deposits being 7billion USD lower than the amounts loaned out as of the end ofSeptember.
Local corporate borrowers are trying to buydollars to repay their foreign currency loans while the central bank iswilling to sell dollars to meet high demand, he said, adding that thebank will use the balance of payments surplus to stabilise the forexmarket./.
It was the 12th increase since October 5.
The interbank dollar exchange rate has advanced 140 VND per dollar, or0.68 percent, over the past two months since the central bank committedto keeping fluctuation under 1 percent until the end of this year.Therefore, to meet its pledge, the dollar exchange rate will be allowedto surge 0.32 percent or by 66 VND.
At commercial banks,dollar exchange rates on Oct. 26 listed higher than 20,970 VND, up 21VND over the previous day. Vietcombank and Vietinbank quoted thegreenback at 20,971/20,976 VND while Eximbank and ACB figures were20,953/20,963 VND.
Experts said that the foreign exchangemarket will likely experience tension at the end of the year when demandfor US dollars increased due to rising imports and repayment of foreigncurrency loans.
However, vice chairman of the NationalFinancial Supervisory Commission, Le Xuan Nghia told Tuoi Tre (Youth)newspaper that the Government will indeed be able to keep ratefluctuation under 1 percent.
Nghia explained that balanceof payments is expected to see a surplus of 4-5 billion USD this year,the first since 2007. The country's foreign exchange reserves are alsoestimated to be equal to 7.5 weeks of import cover compared to 3.5 weeksearlier this year, higher than that expected by the National FinancialSupervisory Commission.
He said that capital accounts currently enjoy a surplus of around 9 billion USD, alongside positive remittance.
While the Government fights inflation, it cannot let the exchange rate rise as sharply as during previous years, he noted.
Nghia explained that one of the factors which have pressurised exchangerates during recent days include foreign currency deposits being 7billion USD lower than the amounts loaned out as of the end ofSeptember.
Local corporate borrowers are trying to buydollars to repay their foreign currency loans while the central bank iswilling to sell dollars to meet high demand, he said, adding that thebank will use the balance of payments surplus to stabilise the forexmarket./.
