The U.S. dollar plummeted to a sell price of VND22,740-22,745 on Wednesday at banks across Vietnam, a VND10-15 per dollar slide from earlier this week.
Bid prices also took a hit, dropping to VND22,660 per dollar the same day, according to listed prices at Vietcombank and ACB.
According to bank officials, the trend is due to a desire for Vietnamese dong in lieu of dollars for shopping ahead of Tet, or the Lunar New Year, the biggest public holiday in Vietnam.
Tet falls on February 16 this year, with nationwide celebrations beginning at least a week prior and lingering for another week afterward.
A wave of inward remittances from overseas Vietnamese during the holiday season has also led to abundance in domestic supply of the currency, contributing to falling dollar prices on the market.
The State Bank of Vietnam has the adjusted the central exchange rates of VND versus USD to VND22,445 per dollar, a slight drop of VND5 per dollar after a period of continued increase.
Listed VND-USD rates at commercial banks in Vietnam are still up to VND388 per dollar lower than the ceiling rate stipulated by the central bank.
Foreign exchange reserves at the State Bank of Vietnam exceeded US$54.4 billion in February following recent large-scale net purchases.