The country net purchased over 6 billion USD in 2018 to raise its foreign exchange reserves, the State Bank of Vietnam (SBV) reported at a meeting in Hanoi on January 9 to launch tasks for the banking sector this year.
The State Bank of Vietnam kept the daily reference exchange rate on January 7 unchanged from the last working day of previous week (January 5) at 22,829 VND/USD.
The State Bank of Vietnam (SBV)’s Operations Centre has decided to adjust the reference exchange rate of the VND against the USD for the first time since February 2018.
Commercial banks have consecutively lowered the value of the US dollar against the Vietnamese dong during the final days of 2018, helping the USD/VND exchange rate close the year under control.
Ten of the 11 goods categories have seen price increases in October, raising the consumer price index (CPI) by 0.33 percent from the previous month, according to the General Statistics Office (GSO).
The State Bank of Vietnam adjusted the daily reference exchange rate down for the second consecutive day on October 11, setting the rate at 22,719 VND/USD, down 2 VND from the previous day (October 10).
The State Bank of Vietnam continued to adjust the daily reference exchange rate down for the third straight day, setting the rate at 22,674 VND/USD on August 22, 5 VND lower than the rate on the previous day.
The Government will have to decide either to devalue the Vietnamese dong further against the US dollar to support exports and avoid cheaper Chinese goods to flood in the local market, or keep the USD/VND exchange rate stable to avoid increased public debt and control inflation as the US-China trade war accelerates.
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.
The State Bank of Vietnam (SBV) may sell part of its foreign reserves to stabilise the monetary market if the exchange rate continues to climb, the Saigon Securities Incorporation (SSI) forecast.
Vietnam’s foreign currency reserves hit approximate 48 billion USD thanks to the country’s stable macroeconomic conditions and strong influx of exports, FDI and remittance.
The prospect of stable interest rate in 2017 is being supported by macro factors and policies such as reduced pressure in exchange rate and drastic measures in tackling bad debt, the National Financial Supervisory Commission said.
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