A bank teller counts the dollar at a transaction office in Hanoi. (Photo: VNA)The USD/VND exchange rate listed at VietinBank and BIDV on April23 was at 25,180 VND and 25,485 VND per USD dollar for buying and selling, anincrease of 20 VND compared to the previous session.
Vietcombank’s rate also stood high at 25,145 VND and 25,485 VNDper dollar for buying and selling.
This was the sixth session that the selling price of the dollar atbanks has consecutively broken its peak, moving closer to the threshold of 26,000VND per dollar.
On the unofficial market, the dollar price on April 24 alsoincreased by 90 VND per dollar for buying and 110 VND per dollar for sellingcompared to last week to reach 25,770 VND and 25,870 VND per dollar for buyingand selling, respectively.
In the context of the sharp appreciation of the dollar, the SBV onApril 19 announced it was selling the greenback to banks with negative foreigncurrency status at the price of 25,450 VND per dollar, 23 VND per dollar lowerthan the SBV’s cap, to influence the exchange rate. This move is expected tohelp cool down the domestic exchange rate but it is continuing to acceleratedue to the high level of the dollar in the international market.
The sharp increase in the dollar price has caused difficulties tomany domestic companies.
A seafood import company in Hanoi, which declined to be named,calculated that for each 100,000 USD order paid to a partner, it would have tospend an additional 100-150 million VND.
Nguyen Dang Hien, General Director of Tan Quang Minh Company, saidthe beverage manufacturing industry is facing many difficulties, includingincreased exchange rates.
According to Hien, his company currently has to import some typesof orange juice, some flavours and plastic beads from other countries and mosthave to be paid in the dollar, which has increased production costs by 4-5%.However, product selling prices have not increased for many months due to weakpurchasing power.
To limit damage from the rising exchange rate, the Tan Quang MinhCompany is trying to promote the search for domestic raw material sources toreplace imports, and increase exports to markets paying in the dollar, Hiensaid.
Director of SKD Vietnam Mechanical Company Nguyen Van Ket saidcompanies’ plans will not be affected if the Vietnamese dong depreciatesby some 2-3% this year as previously forecast. However, the dong has sofar strengthened by nearly 5%, while raw material prices, input andinternational transportation costs remain high due to rising gasoline price,which cause more difficulties for businesses.
In the context of the rising exchange rate, experts recommend thatimporting businesses need to pay attention to exchange rate risk preventiontools, and carefully consider the terms in foreign currency loan contracts.
Besides, it is also necessary to maximise domestic resources andfind alternative domestic partners to gradually reduce dependence on importmarkets to lower costs and limit risks when the world market fluctuates.
In addition, businesses should also choose banks with good tradesupport capabilities, and consider using derivative financial instruments andswap contracts, appropriately and in accordance with regulations, to reducerisks when exporting in the context of the current exchange ratefluctuations./.
VNA
