US dollar rates steady following central bank’s Circular 15 hinh anh 1Illustrative image (Photo: VNA)

The exchange rates between Vietnam dong and US dollar saw a slight change at domestic commercial banks on October 5 following Circular 15 issued by the State Bank of Vietnam (SBV) taking effect.

The Circular No. 15/2015/TT-NHNN on foreign currency transactions by credit institutions was issued on October 2 and took effect on October 5 to curb speculation and hoarding of US dollars by enterprises.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) kept the buying and selling rate of the US dollar on October 5 unchanged from the previous week, listing at 22,445 VND and 22,505 VND per dollar, respectively.

Meanwhile, at the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), the buying rate raised five VND to 22,445 VND per dollar and the selling rate was cut by five VND to 22,505 VND per dollar.

The Bank for Investment and Development of Vietnam (BIDV) quoted its buying rate at 22,440 VND per dollar and the selling rate at 22,510 VND per dollar, both up 5 VND.

On the same day, the gold price at the Saigon Jewellery Company (SJC) was listed below 34 milion VND (1.510 USD) for one tael, with buying and selling prices pegged at 33.71- 33.93 million VND (1,497-1,507 USD).

Circular 15 states that foreign currency transactions with banks must be accompanied by documents proving the purpose, amount and duration of payments.

If customers need to settle with partners within two working days, banks can sell foreign currencies immediately.

When the payment term is more than three days, banks are only allowed to sell forward exchange, with the maximum term of 365 days.

The circular was the second step taken by the central bank in the past few weeks to contain the dollarisation of the domestic economy.

Early last week, the central bank issued a decision to cut the interest rate ceiling on dollar deposits offered by commercial banks to organizations and companies from 0.25 percent to zeo percent per year, while the rate for individuals was reduced from 0.75 percent to 0.25 percent per year.-VNA