Vietnamplus

The USD/VND exchange rate has grown strongly at the heart of the global fight over economic dominance between the US and China, the world’s two largest economies.

The US Federal Reserve (Fed)’s latest rate cut will benefit commodity and equity markets in the short term, according to specialist Nguyen Tri Hieu.

Vietnam’s consumer price index (CPI) in July rose by 0.18 percent month-on-month, and 2.44 percent from the same period last year, according to the General Statistics Office (GSO).

Vietnamese banks are seeking to raise capital in international bond markets as they face growing pressure to hike capital to satisfy the central bank's regulations on minimum capital requirements and Basel II standards by early next year.

The foreign exchange market in Vietnam has heated up recently when the daily reference exchange rate set by the State Bank of Vietnam (SBV) continuously climbed to new record levels and the VND/USD rates listed at commercial banks also surged.

Experts have predicted that the State Bank of Vietnam (SBV) will hike the VND/USD exchange rate by 1.5-2 percent in 2019 to stabilise the macro-economy and facilitate exports.

In 2018, the VND only devalued about 2.2-2.3 percent compared to the USD and lower than the depreciation of EUR, pound and yuan at 4.5 percent, 5.7 percent and 5.4 percent, respectively.

The Vietnamese monetary market will not suffer from any significant impact from the US Federal Reserve (FED)’s fourth interest rate hike in 2018 as the move was already expected, experts have said.

The average consumer price index (CPI) in the nine months of 2018 rose by 3.57 percent year on year, compared to the 4.14-percent growth in the same period last year, according to the General Statistics Office (GSO).

Vietnam’s consumer price index (CPI) in August inched up 0.45 percent month-on-month, and 3.89 percent from the same time last year, pushing up the eight-month figure to 3.52 percent year on year, according to the General Statistics Office (GSO).

The US-China trade war and the fall in the Chinese Yuan post big impacts for the world economy, including Vietnam. Some experts have said Vietnam should employ flexible exchange rate policies in response.

The State Bank of Vietnam (SBV)’s recent response to the continuous rise of USD prices has demonstrated its readiness to make an intervention in order to stabilise the foreign exchange market.

The recent increase in the VND/USD exchange rate was due to inside and outside impacts such as some poor sessions in the domestic stock market and the USD price rise globally, according to Pham Thanh Ha, head of the State Bank of Vietnam (SBV)’s Monetary Policy Department.

The daily reference exchange rate was adjusted up on June 26, being set at 22,625 VND/USD, an increase of 10 VND from the previous day.

The US dollar has appreciated significantly against the Vietnamese dong in the past few days, but local officials and experts believe these hikes won’t affect Vietnam’s economy in any major way.

Prime Minister Nguyen Xuan Phuc has highlighted Vietnam’s position for clean renewable development, affirming the country is well positioned to strongly develop renewable energy and gradually reduce the use of fossil fuels.

The State Bank of Vietnam set its reference VND/USD exchange rate at 22,458 VND/USD on the morning of March 30, down by 5 VND from the day ago.

The State Bank of Vietnam set its reference VND/USD exchange rate at 22,453 VND/USD on the morning of March 28, up by 10 VND from the day ago.

The State Bank of Vietnam set its reference VND/USD exchange rate at 22,443 VND/USD on the morning of March 27, down by 12 VND from a day ago.

The State Bank of Vietnam set its reference VND/USD exchange rate at 22,455 VND/USD on the morning of March 26, unchanged from the end of last week.