Vietnam widens dollar-dong trading band

By Huong Do   October 16, 2022 | 08:55 pm PT
Vietnam widens dollar-dong trading band
A Vietnamese flag flies atop the State Bank building, near the Vietcombank and Bank for Investment and Development of Vietnam buildings, in central Hanoi. Photo by Reuters/Kham
The State Bank of Vietnam on Monday widened the daily dollar-dong trading band to 5% from 3% to help boost the competitiveness of the country's exports.

The new band, on either side of a value set daily by the central bank within which the dong can move, took effect Monday following rate hikes by the U.S. and other countries.

The SBV also depreciated the dong by VND455 to the dollar to VND24,380.

It said it would continue to closely monitor movements and use policy tools when necessary or intervene in the forex market to stabilize it.

On Monday, the country’s largest lender Vietcombank set its selling rate rate at VND24,440.

The U.S. Dollar Index, which measures the greenback’s strength against six major currencies, firmed at 113.12.

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