Greenback strengthens to record high against dong

By Le Chi   July 31, 2018 | 04:44 pm GMT+7
Greenback strengthens to record high against dong
An employee holding Vietnamese dong banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Anh Tu

The Vietnamese dong continued to weaken against the U.S. dollar with the exchange rate hitting the lowest in years on Tuesday.

The State Bank of Vietnam fixed a reference rate of VND22,669 for the greenback on Tuesday morning, up VND10 from Monday and VND20 from last weekend.

In response to the central bank’s adjustment, local banks have also upped their rates.

The Asia Commercial Bank sold a U.S. dollar for VND23,330 and bought it for VND23,250 at 11:20 a.m., up VND20 from Monday morning.

Vietcombank listed the dollar at VND23,245-23,325, up VND25 from Monday morning and almost 50 dong from last weekend.

The Orient Commercial Bank, one of the banks with the highest exchange rate on Monday morning, upped its dollar price by VND10 on Tuesday morning. It sold a dollar for VND23,345 and bought it for VND23,320.

These moves have increased the U.S. dollar’s value by 2.6 percent compared to earlier this year.

The U.S. dollar is gaining strength because the Chinese yuan (CNY) has weakened for the last two months as a fallout of the U.S.-China trade war, said the leader of a bank in Southern Vietnam who did not want to be named.

This has created pressure on other countries in Asia, especially Vietnam, because the country has an important trade relationship with China, the source said.

The exchange rate was under pressure as Vietnam’s trade with China recorded a deficit of almost $900 million in the first half of July, the source added.

Experts have estimated that the U.S. dollar value will rise by three percent this year.

 
 
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