Vietnam central bank raises dollar exchange to 5 month high at vnd20,668

Vietnam’s central bank raised the U.S. dollar’s exchange rate by VND13 to VND20,668 on Tuesday, the highest rate from May 27, 2011.

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 VND20,875 and the flooring price was VND 20,461.

Commercial banks followed suit, adjusting up dollar prices by around VND13 to VND20,850 –VND20,856 for bids and the ceiling VND20.875 for ask.

However, dollar prices at the gold shops in Hanoi bucked the trend, last trading around VND21,400-21,800 for bid and ask respectively, down VND70 from yesterday close but still VND 405 higher than the official ceiling rate.

Traders said dollar demand on the black market fell after the news that the central bank is mulling to open the national gold exchange in an effort to stabilize local gold market, prevent dollar outflows and create close price parity between local and global markets.

However, analysts said dollar exchange rate faces certain pressure in the last months of the year on seasonal factors due to high import demand before lunar Tet holiday, contract settlement, and loans paybacks.

Source TEI

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

Posted by VBN on Oct 12 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry