Greenback flattens
Greenback flattens
The exchange rate between the dong and the U.S. dollar has been moving sideways in recent days, which is an abnormal phenomenon as the greenback usually turns firmer against the domestic currency due to high demand at the end of the year.
According to a report by HSBC Bank, the greenback has remained flat at VND23,175, almost equal to the buying price set by the State Bank of Vietnam, backed by an ample foreign currency supply and low dong liquidity.
The General Customs Department last week announced the nation’s trade surplus at US$1.45 billion in November, bringing this year’s trade surplus figure to a new record high of US$10.94 billion.
Meanwhile, improved liquidity has helped lower interbank rates. Vietnam Interbank Offered Rates by major lenders on December 16 stayed at 3.57% per year for the overnight tenor (down 46 basis points compared with a week earlier), 3.73% for one week (down 40 basis points) and 4.1% for one month (down 25 basis points).
The central bank continued lending VND19.5 trillion to commercial banks through open market operations last week. Ending last week, the total outstanding loans made through the channel reached VND54.1 trillion, up nearly VND2 trillion against the previous week.
