State Bank adjusts USD/VND exchange rate band to 5%

The State Bank of Vietnam (SBV) has decided to widen the USD/VND spot exchange rate band from +/-3% to +/-5%, effective from October 17.

Illustrative photo (Source: VNA)

 Hanoi (VNA) – The State Bank of Vietnam (SBV) has decided to widen the trade band of USD/VND spot exchange rate from +/-3% to +/-5%, effective from October 17.

According to the SBV, between the beginning of 2022 and now, the US Federal Reserve (Fed) and many major central banks have tightened monetary policy, and raised interest rates.

Meanwhile, the Russia-Ukraine conflict has disrupted the global supply chain, pushed up gasoline and commodity prices, causing great fluctuations in the international and domestic markets.

In response, the State Bank has proactively and flexibly implemented tools, solutions and interventions to maintain stable and smooth operation of the currency and foreign exchange markets.

The bank said after the latest trading band adjustment, it will continue to closely monitor market developments, coordinate monetary policy tools, and stay ready to sell foreign currencies to stabilise the market when necessary./.

VNA