Illustrative image (Source: VNA)Hanoi (VNA) – The exchange rate in 2016 will not have big changes in order to ensure macro-economic stability and support economic growth in accordance with the Government’s orientations, according to Bui Quoc Dung, head of the State Bank of Vietnam (SBV)’s Monetary Policy Department.
Dung said that before the SBV implemented its new exchange rate management by announcing the central rate daily, many economists and organisations had forecast an increase of 5-7 percent in the exchange rate.
However, the forecasts changed as the central bank’s move helped stabilise the forex market and made the exchange rate decrease sharply.
The Standard Chartered Bank predicted a rise of 1-2 percent in 2016 while the Hong Kong-Shanghai Banking Corporation (HSBC) forecast a 3-4 percent increase. Several economists said that the exchange rate would be up around 3 percent this year.
To implement the Government’s policy of gradually easing the dollarisation, the SBV’s management measures have followed the goal of decreasing foreign currency speculation and only using US dollar in international payment.
The dollarisation rate fell from 16 percent in late 2011 to around 10 percent currently – the lowest rate recorded so far.-VNA
