The central bank increased the average inter-bank exchange rate between the VND and USD
applicable to August 19 from 21,673 VND to 21,890 VND per dollar and also widened the trading band of VND/USD from +/- 2% to +/- 3%. With those adjustments, the ceiling exchange rate is 22,547 VND per dollar and the floor rate is 21,233 VND per dollar.
According to the central bank, in respond to the Chinese yuan’s strongest devaluation in two decades, the SBV already raised the trading band of VND/USD from +/- 1% to +/-2% on August 12. Developments in the domestic and foreign markets in the following days showed that move was appropriate.
However, the domestic market is still concerned over the impact of the US Federal Reserve (FED)’s possible increase of interest rates, the bank said, elaborating that it hiked the inter-bank exchange rate to proactively lead the market and prepare for adverse effects of the FED’s likely move.
The SBV noted that with these adjustments, the VND will be more flexible to changes in the domestic and global markets until early 2016, helping ensure stability in the foreign exchange market and the competitiveness of Vietnamese goods.
The SBV affirmed to carry out synchronous measures and monetary policy tools to stabilise the foreign exchange market and exchange rates.
applicable to August 19 from 21,673 VND to 21,890 VND per dollar and also widened the trading band of VND/USD from +/- 2% to +/- 3%. With those adjustments, the ceiling exchange rate is 22,547 VND per dollar and the floor rate is 21,233 VND per dollar.
According to the central bank, in respond to the Chinese yuan’s strongest devaluation in two decades, the SBV already raised the trading band of VND/USD from +/- 1% to +/-2% on August 12. Developments in the domestic and foreign markets in the following days showed that move was appropriate.
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The SBV noted that with these adjustments, the VND will be more flexible to changes in the domestic and global markets until early 2016, helping ensure stability in the foreign exchange market and the competitiveness of Vietnamese goods.
The SBV affirmed to carry out synchronous measures and monetary policy tools to stabilise the foreign exchange market and exchange rates.
