Oct 6: Vietnam central bank raises dollar exchange second straight day to vnd20,648

Vietnam’s central bank raised the U.S. dollar’s exchange rate by VND10 to VND20,648 on Oct 6, a second straight upward adjustment as demand for the green rose.

Commercial banks are allowed to apply effective exchange rate +/-1% from the official exchange rate set by the central bank, accordingly, the ceiling price for a dollar today was VND20,854.

Commercial banks followed suit, adjusting up dollar prices mostly by VND10 to VND20,830 –VND20,850 for bids and the ceiling VND20.854 for ask.

Dollar Price Quote for October 6, 2011

Bank	Bid	Changes	Ask	Changes
Vietcombank	20,850	10	20,854	10
ACB	20,830	10	20,854	10
Eximbank	20,840	20	20,854	10
BIDV	20,840	10	20,854	10
Sacombank	20,830	20	20,854	10

Dollar prices at the gold shops in Hanoi were last trading at VND21,500-21,650 for bid and ask respectively, easing VND50 from yesterday close and VND800 or 3.8% the official ceiling rate.

In a statement released on October 5, the State Bank of Vietnam reiterated it will aim to keep the exchange rate move within 1% band from now to year-end.

“The SBV and commercial banks will continue selling foreign currencies to intervene the market, fully meet essential demand of the economy, and ensure stable exchange rate range within 1% until year-end” it said.

Local gold premium on high demand and speculation have added pressure on the exchange rate and the market.

The SBV vowed to have strong-enough measures to stabilize the local gold prices in parity with global market, prevent speculation, cross-border illegal trade which negatively impact forex and exchange rate stability.

According to the SBV, Vietnam is estimated to have a surplus of $5 billion in balance of payment (BoP) in the first seven months of 2011, enabling the central bank to stabilize the exchange rate and to keep USD interest rates stable until year end.

Source Scarlet D./ Analyst / StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam forex market