Exchange rate to stay stable, says bank Governor (26-02-2009) Cashiers count money at the VIB Bank headquarters in Ha Noi. The Government has no plan to adjust the current foreign exchange rates, says the head of the central bank. — VNA/VNS Photo Tran Viet HA NOI — The Government of Viet Nam had no plan to adjust the current foreign exchange rate, said State Bank of Viet Nam Governor Nguyen Van Giau. The central bank had the capacity to balance supply and demand for the US dollar, he said. Giau was responding to predictions the bank would appreciate the dollar and that the greenback supply was low. Neither of which was correct, he said. His public statement followed an unusual and sudden appreciation of the currency against the Vietnamese dong on the black market since last week, in contrast to a stable dollar on the banking market. The central bank listed the inter-bank rate market at around VND16,973 per dollar, while a dollar cost around VND17,482 at commercial … [Read more...] about Exchange rate to stay stable, says bank Governor
Treasury exchange rates
Reference, interbank exchange rates fluctuateDuc Nam HCMC – The average daily reference exchange rate between the Vietnam dong and the U.S. dollar set by the State Bank of Vietnam (SBV) has become strongly volatile in recent days. Meanwhile, the interbank exchange rate has fluctuated too while the SBV has not bought the greenback in the past two weeks. The exchange rate was VND22,318-22,320 to the dollar on the interbank market on Monday morning, and skidded to VND22,315 in the afternoon session before climbing to VND22,328 at the end of the day. The central bank on Tuesday announced the reference rate at VND22,033 to the dollar, up slightly from the previous session. This means commercial banks could trade the dollar in the range of VND21,372 and VND22,694. Credit institutions said higher dollar demand of foreign-invested enterprises was behind the dollar spike against the dong. They expected the dollar would continue strengthening in the next few days and may beat the … [Read more...] about Reference, interbank exchange rates fluctuate
The interest rate hike by the US Federal Reserve (FED) is expected to increase pressure on the dong in the context that Vietnam is trying to push economic development and employment by seeking export-led growth. The FED raised the range of its benchmark interest rate, for the first time in nearly a decade, by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs, Reuters reported. It has indicated that it would raise interest rates four more times before the end of 2016. Former governor of the State Bank of Vietnam, Cao Sy Kiem, said pressure on the dong’s exchange rate would rise next year. Some countries recently weakened their currencies against the dollar anticipating the US interest-rate hike. “If the dong is not devalued, the country’s exports will find it hard to compete in the US, Vietnam’s biggest export market,” Kiem said. … [Read more...] about Economists concerned about dong devaluation, FDI drain on US rate hike
(VOVworld) – US Secretary to the Treasury Jacob Lew has urged China to hasten the process of the liberalisation of its currency Renminbi ahead of the two countries' economic conference next month. Renminbi’s current exchange rate should be floated in line with market developments, said US Secretary to the Treasury Jacob Lew. Lew told Wang Yang, China’s Deputy Premier, in a phone call on Monday that Beijing needed to quickly adopt a system for the exchange rate under market mechanisms. Lew said that Renminbi’s current exchange rate for the USD was too low and it should be floated in line with market developments to minimise the trade gap. This is not the first time that the US has discussed Renminbi’s exchange rate with China and normally China’s response is to consider the US’s request or promises to adjust based on the domestic situation. Washington believes Renminbi’s current exchange rate is lower than its real value and that … [Read more...] about US urges China to adjust exchange rate of Renminbi
VietNamNet Bridge - In order to keep the interest rate gap between the USD and the VND attractive, the interest rates for the VND have not been reduced. Surprisingly, while the Consumer Price Index (CPI) has increased very slowly or has decreased, the deposit interest rates have remained unchanged. The General Statistics Office (GSO) announced that the CPI in September decreased by 0.21 percent compared with the month before. The figure did not surprise analysts, who had heard that both Hanoi and HCM City had reported minus inflation rates in their localities. However, the deposit interest rates remained high. As a result, the real positive interest rate has increased to 5-6 percent. This means the real profit that depositors can pocket after deducting the CPI increase is 5-6 percent per annum. In previous years, the figure was just 2-4 percent. Analysts believe that the interest rates won’t be decreasing towards the end of the year. They think that it would be a … [Read more...] about Should the interest rate be cut or the exchange rate stabilized?