Vietnam's forex market to see stability through year-end: report

By Dam Tuan   October 31, 2016 | 08:28 pm PT
Vietnam's forex market to see stability through year-end: report
Overseas Vietnamese are sending back more money to their home country this year. Photo by VnExpress/Hoang Ha
Strong investment and remittance inflows have put the country in a good position this year.

Strong exports and investment inflows will continue to ensure stability for Vietnam's foreign exchange market in the final two months of the year, the National Financial Supervisory Commission said in a new report.

The commission, which advises the government on financial and monetary issues, said the market has been under no pressure so far this year, with the local currency generally standing its ground against the U.S. dollar. The central exchange rate was adjusted gradually and reached 22,039 per dollar on October 31, up about 0.6 percent from January.

Exchange rates set by commercial banks have also been stable, ranging from 22,330 to 22,350 per dollar, while the unofficial market has seen no big fluctuations either.

According to the commission, a trade surplus of $2.8 billion and $11.02 billion in actual foreign direct investment have helped a lot.

The foreign currency supply is adequate for the central bank to shore up forex reserves.

According to local media reports, the State Bank of Vietnam bought $11 billion worth of dollars. The country's forex reserves have hit a record high of over $40 billion.

Overseas remittances, a key part in Vietnam's economy, have also been rising. Ho Chi Minh City, the main recipient, reported a 4 percent year-on-year increase in remittances in the first nine months, to $3.25 billion.

Related news:

> Remittances to HCMC climb to $3.25 bln in first 9 months

> HCM City rakes in $2.9 bln in overseas remittances from Jan-Aug

> Overseas remittances hit $2.5 bln in HCM City

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