Experts say no concern for US dollar appreciation

The US dollar has continued to appreciate against the Vietnamese dong in recent days, but experts are not concerned about the rise, saying the central bank will take effective measures to get the foreign exchange market under control.

 

The State Bank of Viet Nam (SBV) on Thursday set the daily reference exchange rate at VND23,051, up VND5 from the day earlier.

With the current trading band of +/- 3 per cent, the ceiling rate applied by commercial banks for the day is VND23,742 and the floor rate is VND22,359.

Commercial banks also adjusted their rates up by some VND20-40 per dollar on Thursday after increasing the rates significantly in the first three days of this week. Compared with last Friday, the dollar listed at commercial banks on Thursday appreciated by some VND120 against the dong.

Vietcombank and BIDV posted the buying rate at VND23,340 and the selling rate at VND23,460, up VND30 from the same time the day earlier.

Techcombank posted VND23,315 per dollar for buying and VND23,450 for selling, up by VND30 from the day ago.

However, economists said that there was nothing to worry about the depreciation of the dong.

Pham Hong Hai, CEO of the Hongkong and Shanghai Banking Corporation (HSBC), said the increase would not have a big impact on the market, explaining as the picture of the US-China trade war becomes clearer, the market would stabilise.

According to Hai, with the current high foreign exchange reserves (at some US$69 billion), the SBV will be able to ensure market liquidity to help ensure market stability.

Sharing this view, chief economist at the Bank for Investment and Development of Vietnam Can Van Luc said there was nothing to worry about the increase in exchange rates, as the central bank has much experience in dealing with this matter, and the dollar is only one among the eight currency baskets managed by the bank every day.

SBV Deputy Governor Nguyen Thi Hong on Wednesday also affirmed the central bank would intervene to stabilise the foreign exchange market if necessary.

bizhub

 

 

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