Amid the fluctuation of the global financial market, the exchange rate in Vietnam has remained stable in the first four months of this year, and the Vietnam dong has been considered one of the most stable currencies in Asia, according to experts.
Experts expected the rapid decline of interest rates in the US and the world will facilitate the Vietnamese dong’s appreciation, helping the State Bank of Vietnam to accumulate foreign exchange reserves this year.
Vietnam remains one of the 10 countries receiving the most remittances in the world, according to the recent Migration and Development Brief by the World Bank and the Global Knowledge Partnership on Migration and Development (KNOMAD).
VNDirect Securities Corporation expects Vietnamese foreign exchange reserves to recover to 3.3 months of imports and reach 102 billion USD by the end of this year from the current level of 89 billion USD last year, said in its updated macro report.
Indonesia posted a net inflow of 4.1 billion USD from April to May 14, after recording a net outflow of 5.7 billion USD in the first quarter of 2020, said Bank Indonesia (BI) Governor Perry Warjiyo on May 19.
Malaysia's central bank, Bank Negara, said on April 7 that its international reserves stood at 101.7 billion USD as of March 31, down 1.26 percent from March 13.
Bank Indonesia (BI) said on April 3 that it is in talks with the US Federal Reserve (Fed) about potential currency swaps, while also preparing bilateral swaps with the central banks of China and Australia.
The increasing inflow of remittances ahead of the Lunar New Year has replenished the liquidity of the banking system, thus resulting in a steep fall in the interbank interest rates in January, according to insiders.
Vietnam’s foreign exchange reserves have reached approximately 79 billion USD so far this year, with a quarter of it bought by the State Bank of Vietnam (SBV), according to SBV Governor Lai Minh Hung.
The Vietnamese dong was expected to remain broadly stable against the US dollar over the remainder of 2019 and to be slightly weaker on average over 2020, buoyed by robust foreign direct investment (FDI) inflows, dollar purchases by businesses, and a healthy foreign reserve position, experts forecast.
The State Bank of Vietnam (SBV) obtained a large amount of foreign currencies in the first half of 2019, pushing foreign exchange reserves recorded in the period to the highest level to date.
As of March 25, the M2 money supply had risen 2.67 percent, while credit to the economy had grown by some 2.28 percent compared to the end of 2018, according to the State Bank of Vietnam (SBV).
Vietnam’s economic growth could reach 6.9 percent in 2019, an increase of 0.1 percent compared to the 2019 socio-economic development plan adopted by the National Assembly, in the context that Vietnam is benefiting from the US-China trade tension
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.
In 2018, the banking sector witnessed many achievements such as increasing foreign exchange reserves, remittances, and profit, but also faced challenges in interest and foreign exchange rates.
The State Bank of Vietnam’s net purchase of foreign currencies exceeded 11 billion USD in the first half of 2018, increasing the nation’s foreign exchange reserves to approximately 63.5 billion USD.
The State Bank of Vietnam (SBV) continues to build up its foreign exchange reserves to cushion external shocks, raising the fund to a new record high of more than 57 billion USD till February 6.
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