VietFinanceNews.com – The State Bank of Viet Nam yesterday announced an increase in the interbank exchange rate to VND20,668 per dollar, VND15 higher than that of Monday and the fourth increase since last Wednesday.
Driven by the State Bank move, commercial bank forex rates soared accordingly, Vietcombank posting a VND20,875 – VND20,870 per dollar sell/buy, an increase of VND15 and VND14 per dollar.
Several other banks including, Asia Commercial Bank and Eximbank, also increased their forex rates to selling prices of VND20,875 per dollar and buying prices of VND20,853 – VND20,855.
On the black market however, greenbacks settled on VND21,250 – VND21,280 (buying/selling) yesterday, a decrease of VND100 per dollar.
On the domestic market, the price of gold increased significantly due to increased world prices and the hike of forex rates announced by the SBV.
At 12pm yesterday, gold shop Phu Quy on Tran Nhan Tong Street, Ha Noi, posted buy/sell prices of SJC gold at VND43.8 million (US$2,105.77) – VND44.03 million ($2,116.83) per tael (one tael being equivalent to 1.2 ounces), VND500,000 higher than on Monday.
At the same time, the spot world price on the London Bullion Market was $1,679 per ounce.
Last Wednesday, the central bank said it would continue selling US dollars to cool down the domestic foreign exchange market, ensuring that the value of the domestic currency would not fall by more than 1 per cent against the dollar between now and the end of the year.
If the Vietnamese dong was to devalue by 1 per cent, the forex rate would be VND20,834 per dollar. Thus far, the adjustment had reached 0.2 per cent, experts said.
Vo Tri Thanh, deputy director of the Central Institute for Economic Management, said that higher exchange rate pressure would overshadow the rest of the year.
Senior economist Tran Hoang Ngan said that, as the adjustment still fell below 1 per cent as set by the central bank, there was no need to be worried.
He added that the inter-bank rate increase was a way of managing exchange rates flexibly to create market stability, saying there was no reason for devaluating the domestic currency as inflation had been under control and demand and supply for foreign currencies were stable.
On Monday, the central bank allowed two more banks to sell gold, alongside Sai Gon Jewellery Ltd Company (SJC) and five other banks including DongA Bank, ACB, Techcombank, Eximbank and Sacombank, to stabilise the chaotic domestic market for gold. These banks are set to also re-open their foreign gold trading accounts.