Exchange rates have tended to increase since late April, but the market’s liquidity and legal demand for foreign currencies have been still ensured, according to a central bank official (Photo: VNA)Hanoi (VNA) – The monetary market’s liquidity has remainedstable and foreign currency supply and demand are relatively balanced amidstthe uptrend of USD/VND exchange rates over the last few days, an official fromthe State Bank of Vietnam (SBV) has assured.
Director of the SBV’s Monetary Policy DepartmentPham Thanh Ha said on May 21 that the exchange rate hike was mainly driven bythe market’s concern about the possibility of US-China trade talks worseningand the continuous depreciation of the Chinese yuan since late April.
After the central bank listed the USD buyingrate at 23,200 VND per USD on January 2, exchange rates in the market stayedrelatively stable until mid-April. Therefore, the SBV purchased a large amountof foreign currencies to raise foreign exchange reserves, thus helping toconsolidate the national financial-monetary security and improve the capabilityof making interventions when necessary.
Exchange rates have tended to increase sincelate April, but the market’s liquidity and legal demand for foreign currencieshave been still ensured, he said.
On May 21 morning, the SBV set the referenceexchange rate at 23,069 VND per USD, up 23 VND from May 8, when the ratereached a record high.
At 8:15 am, Vietcombank posted the buying rateat 23,345 VND/USD and the selling rate at 23,465 VND/USD, up 15 VND from thesame time of May 20.
BIDV offered the respective rates at 23,350 –23,470 VND/USD, up by 20 VND. Techcombank posted 23,325 VND/USD (buying) and23,465 VND/USD (selling), up 15 VND.
Ha said the central bank will continue keeping aclose watch on both the domestic and foreign markets to set the daily referenceexchange rate in a flexible manner. It will also use synchronous measures andpolicy tools to stabilise the market.
If necessary, the SBV is ready to sell foreigncurrencies at suitable prices to keep the market and macro-economy stable, theofficial added.–VNA
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