Vietnam’s foreign currency reserves hit record high

By Thanh Le   October 12, 2017 | 12:52 am PT
The central bank has reported healthy liquidity in the foreign currency market and a stable exchange rate.

Vietnam’s foreign reserves have grown by more than 15 percent since the end of last year to reach their highest ever level, Party leader Nguyen Phu Trong said on Wednesday.

Trong was addressing a major Party meeting and reported that the country’s foreign reserves have reached $45 billion, which is around $6 billion higher than in late 2016.

The latest landmark surpasses the previous record of $42 billion announced in July, when the central bank reported a stable U.S. dollar exchange rate and healthy liquidity in the foreign currency market.

The dollar/dong rate in the banking system has been falling this week. The buying rate at major lender Vietcombank stood at VND22,685 on Thursday.

Vietnam’s foreign exchange reserves fell sharply to $27.9 billion at the end of 2015 during a campaign to curb dollar hoarding and stabilize the foreign exchange market.

Last year, the central bank decided to ease exchange rate rules, setting the official mid-point rate of the Vietnamese dong against the U.S. dollar on a daily basis.

Vietnam previously used a system that permitted the dong to trade around a fixed range that the central bank adjusted from time to time.

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