Vietnamese forex market cools down after central bank's confirmation of keeping rate

With the State Bank of Vietnam (SBV)' s confirmation that it will not make further adjustment to Vietnamese dong (VNA) and U.S. dollar (USD) exchange rate, the price of the foreign currency at commercial banks cooled down on Thursday after heating up in the last few days.

On Thursday, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) posted its USD buying and selling prices at 22,460 and 22,520 Vietnamese dong (VND), respectively. The rates dropped by 40 and 20 VND, respectively compared to the previous day.

The Bank for the Investment and Development of Vietnam (BIDV) set the buying and selling rates at 22,450 VND and 22,510 VND per USD while the rates at Vietnam Export Import Commercial Joint Stock Bank (Emximbank) are transacting at 22,430 and 22,520 per USD, both lowered by 50 to 25 VND from a day earlier.

General Director of the Industrial and Commercial Bank of Vietnam (Vietinbank) Le Duc Tho was quoted by Vietnam's state-run news agency as saying that the foreign exchange market is becoming stable and transactions are returning to a suitable rate within the trading band set by the SBV.

Earlier at a government meeting in Hanoi on Tuesday, SBV governor Nguyen Van Binh said the exchange rate between VND and USD has been adjusted remarkably recently and there is no reason for further devaluation of the Vietnamese currency.

So far this year, the Vietnamese currency has lost 5 percent in value against the USD.