The State Bank of Vietnam, the central bank of the Southeast Asian country, on May 7 allowed the local currency to lose another one percent against the greenback, after taking the same move in the middle of January
The State Bank of Vietnam (SBV) has said it will keep the exchange rate between the U.S. dollar and the Vietnamese dong changing within two percent next year to help reduce dollarization and stabilize the local currency’s value
Experts predict inward remittances will continue to increase over the period 2015-2016, but will decrease slightly from 2017.
As the supply of the greenback is still ample, local bank officials, manufacturers and traders say they are not worried about the forex rate increase
The fact that the differences in the price of gold bullion in the local and international market continued to expand, and the price of the greenback kept rising over other currencies on the international market, is the main psychological reason behind the rally of the US dollar locally
The foreign exchange rate between the US dollar and the Vietnam dong has fallen back after the information of the intervention in the forex market of the State Bank of Vietnam spread
During the last 3 years, the amount of inward remittances continued to increase from $9 billion in 2011 to $10 billion in 2012 and $11 billion in 2013
The State Bank of Vietnam earlier this month bought a huge volume of U.S. dollars in an effort to prevent the greenback from devaluing against the local currency, the Vietnam dong, as it tried to keep its word on stabilizing the dong value to support local exporters
Truong Van Phuoc, deputy chairman of the National Financial Supervisory Commission, said that hoarding the U.S. dollar will not be a trend as the central bank has devalued the dong by one percent
The State Bank of Vietnam has enough gold bullion that can be sold on a large scale to intervene in the local gold market to ensure its stability