The State Bank of Vietnam on Wednesday set the daily reference exchange rate for the dong at VND23,013 per U.S. dollar, up VND9 from the previous day and reaching the highest rate ever. With the current trading band of three percent, the ceiling rate applied by commercial banks for the day is VND23,703 to the dollar while the floor rate is VND22,322 VND per USD.
Since the start of 2019, the central bank’s reference exchange rate has increased by VND179 per USD, equivalent to a rise of 0.78 percent.
The opening hour rates at commercial banks stayed stable. As of 8:15 am, both Vietcombank and BIDV listed the buying rate at VND23,165 per USD and the selling rate at VND23,265 per USD, unchanged from Tuesday.
On Tuesday, the daily reference exchange rate passed the VND23,000-per-USD mark for the first time since it was introduced by the central bank in 2015.
The central bank adjusts the reference exchange rate, or mid-point rate, for the dollar/dong on a daily basis in a bid to stabilize the foreign exchange market. Banks are allowed to trade the greenback within +/- 3 percent of the mid-point.
Speaking with Tuoi Tre (Youth) newspaper, representatives from Vietnamese lenders said the recent constant growth reflects the SBV’s goal of bringing the rate up to par with actual trading forex rates on the market.
Supply of foreign currencies in Vietnam remains plentiful as the forex market shows no sign of tension, insiders said.