Local bank officials, manufacturers and traders told Tuoi Tre they are not worried about the US dollar-Vietnam foreign exchange (forex) rate increase, as, according to them, the supply of the greenback is still ample.

By the end of Monday’s trading session, the official forex rate quoted at local banks was around VND21,340-21,430 per dollar VNDVND21,405-21,450 per dollar for bid and ask, respectively.

Meanwhile, the ask price for the greenback on the free market peaked at VND21,480 per dollar.

A representative of Asia Commercial Joint Stock Bank (ACB) told Tuoi Tre that the forex rates have increased due to supply and demand factors, which are affected by a new policy.

According to Circular No. 29/2013 / TT-NHNN of the SBV, as of December 31, 2014, the credit institutions will have to stop lending in foreign currency for the majority of the needs of today's businesses, a move aimed at strengthening the value of the Vietnam dong.

But regarding funding for local businesses, the door to access loans in the foreign currency will be closed, which means they have 14 days left to take advantage of this last chance to borrow.

The policy should have been applied two years ago, but the central bank had delayed it twice, in 2013 and 2014.

"However, the immediate response before a policy takes effect reflects almost nothing, and we should wait a little more time to assess its impact," the representative said.

Mr. Phan Huy Khang, general manager of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), said the forex rate of the greenback at some other banks may increase due to their own demand to buy the greenback to balance their accounts.

From the beginning of this year, dollar deposits at Sacombank have increased 7-8 percent, and its own dollar account is in balance, Khang added.

The dollar is appreciating against the dong at a time when there is an increase in the demand for the foreign currency from local businesses to pay for imported goods to prepare for the coming holiday shopping season, said local businesses.

Many businesses confirmed with Tuoi Tre that the current volatility is still under control, and there is no significant impact on business.

In respect to consumer goods, Nguyen Anh Hong, the owner of the Maximark supermarket chain, said the dollar appreciation over time "really is not a big impact to her business as the increase remains low, and still in control."

According to Hong, if carefully calculated, the dollar has recently risen less than 5 percent, "and for the consumer goods sector, enterprises will not import en masse as in previous years because purchasing power is still too weak, so the strain in the dollar supply-demand at this time is meaningless to their businesses,” Hong added.

Curbing the rise in 2015

An authorized source from the central bank on Monday told newswire Vneconomy that SBV will continue to maintain its objective of stabilizing the US dollar-Vietnam dong exchange rate with similar orientation as was applied in the last three years.

Specifically, the source said, the forex policy next year will not change much compared to that in 2014, as well as what was applied during the time when there was volatility in the forex rates in late 2011, 2012 and 2013.

Accordingly, the State Bank is expected to keep the forex rate stable, with fluctuations, if any, at around 2 percent in 2015.

This means that SBV will allow the greenback to appreciate at 2 percent over the dong at maximum next year.