Exchange rate ‘under control’ assures State Bank of Vietnam

By Anh Minh   August 1, 2018 | 07:52 pm PT
Exchange rate ‘under control’ assures State Bank of Vietnam
U.S. dollar banknotes seen at a bank in Ho Chi Minh City, Vietnam. Photo by VnExpress/Anh Tu
The dong has fallen against the U.S. dollar with the exchange rate hitting the lowest in years, but the central bank said the rate is “under control.”

Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam (SBV) Wednesday told the media at a government press conference that the greenback has also strengthened against other currencies in the world and the region.

China’s devaluation of the renminbi is having an impact on how central banks around the world, including in Vietnam, are managing their currency, she said.

The SBV has been adjusting the dollar reference rate by tracking the movements of many currencies, not just one, she said.

The central bank fixed a central rate of VND22,666 on Thursday, up from VND22,669 the previous day but VND17 down from the weekend.

Banks were buying and selling the greenback at VND23,245 and 23,325 this morning, almost 50 dong weaker than the last weekend.

The U.S.-China trade war has resulted in a weakened Chinese currency, putting competitive pressure on other currencies in Asia, according to experts.

Vietnam had a trade deficit of almost $900 million with China in the first half of July as a consequence of the trade war, the head of a bank in southern Vietnam, who did not want to be named, said.

Experts have forecast the dollar to rise by 3 percent this year against the dong.

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