The workshop to announce the report (Photo: VNA) Hanoi (VNA) – There would be no big fluctuations in the foreign exchange rate and interest rate in 2019 as pressure caused by the normalization of monetary policy in major economies in the world has eased, according to the Vietnam Institute for Economic and Policy Research (VEPR) under the VNU University of Economic and Business. In a report on the macro economy in the first quarter released on April 11, the VEPR research group noted that the daily reference exchange rate set by the State Bank maintained a rising trend since the beginning of the fourth quarter of 2018 to the end of the first quarter this year. At the end of March, the rate was nearly 1 percent higher than the level one year ago, lower than the 1.4 percent yearly gain in the fourth quarter of 2018. Meanwhile, the VND/USD exchange rates listed at commercial banks stayed close to the ceiling rate in the trading band of 3 … [Read more...] about No big changes in exchange rate, interest rate in 2019: research institute
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Exporters cope with foreign exchange rate fluctuation
As the exchange rate between USD and Vietnamese dong has surged in the past two months, exporters are eager for extra profits they can earn for each batch of goods. However, importers will have to pay more for their goods. Each year, Aprocimex, a company operating in agriculture sector, has to import nearly 25 million USD worth of goods for manufacturing materials, therefore foreign exchange rate fluctuations are a huge concern. Despite rapid increases in the exchange rate with about 1.6 percent since June, the company has not been affected by the fluctuation as it has prepared its financial plan. Doan Trong Ly, Chairman of Aprocimex Import-export and food processing Joint Stock Company said: "Reasonably high or low exchange rate will not effect enterprises, but if it varies from 2- 3 percent then enterprises have to recalculate their financial resources." Importing nearly 1.3 million USD worth of materials, Viettrust JSC, however, estimated it may suffer a loss of nearly … [Read more...] about Exporters cope with foreign exchange rate fluctuation
Reference exchange rate adjusted down on July 4
Illustrative image (Source: VNA) Hanoi (VNA) – The State Bank of Vietnam cut 5 VND from the daily reference exchange rate for July 4, setting the rate at 22,630 VND/USD. With the current trading band of +/- 3 percent, the ceiling rate applied to commercial banks during the day is 23,309 VND/USD and the floor rate 21,951 VND/USD. The rates listed at some commercial banks saw mixed changes, with Vietcombank reducing both rates by 5 VND but several others continuing to raise their rates. The rates listed at Vietcombank were 23,000 VND/USD (buying) and 23,070 VND/USD (selling). BIDV added 20 VND to both rates, buying the green back at 23,010 VND/USD (buying) and selling at 23,080 VND/USD. Techcombank is listing the buying rate at 22,980 VND/USD, up 50 VND from the previous day and the selling rate at 23,080 VND/USD, up 40 VND. The reference exchange rate has been on a downward trend since the beginning of this week, but the rates listed at commercial banks … [Read more...] about Reference exchange rate adjusted down on July 4
Volatility returns to foreign exchange rates
Volatility returns to foreign exchange rates Following the central bank’s move, many banks immediately adjusted their exchange rates. Vietcombank decided to reduce the đồng’s value by VND45, setting its dollar buying rate at VND22,820 and selling price at VND22,890. The exchange rate on the open market stood at VND23,000 to the dollar. But on the following day (May 30) the dollar lost value. Eximbank cut its buying and selling rates by VND50 to VND22,770 and VND22,860, and Vietcombank by VND35 to VND22,785 and VND22,855. The SBV reduced the interbank exchange rate by VND15 to VND22,590 per dollar. The sharp fluctuations belied the predictions of many experts, who had said exchange rates would remain stable through the year. In the first four months of the year the rates were indeed steady thanks to certain conditions, one of which was the strong GDP growth in the first quarter, estimated at 7.38 per cent, the highest quarterly rate in 10 years. Overseas … [Read more...] about Volatility returns to foreign exchange rates
Stable foreign exchange rate expected in 2018
Some commercial banks appreciated the US dollar after last week’s interest rate hike by the US Federal Reserve (Fed).– Photo vov.vn Some commercial banks appreciated the US dollar after last week’s interest rate hike by the US Federal Reserve (Fed). Experts, however, have said the exchange rate between the US dollar and Vietnamese dong is likely to remain relatively stable throughout the year. In its first policy meeting under new Fed chief Jerome Powell on Wednesday, Fed lifted its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.50 per cent to 1.75 per cent. After this rise, Fed is predicted to have at least two more hikes for 2018, highlighting its growing confidence that tax cuts and government spending will boost the economy and inflation and spur more aggressive future controls. After the Fed’s decision, domestic commercial banks also increased their US$/VND exchange rate. On Friday Vietcombank and BIDV listed the dollar … [Read more...] about Stable foreign exchange rate expected in 2018