On February 24, the interbank exchange rate was VND18,544 per US dollar, while commercial banks were selling dollars at about VND19,000. Meanwhile, on the black market, the dollar was going for VND19,350, shrinking the difference between the bank and street exchange rates from an average of about VND800 a week ago to just VND350.

“The central bank seems to have achieved its goal of cooling off the dollar since this latest devaluation hasn’t made the dollar increase on the street the way it has in the past,” said the  owner of a Hanoi foreign currency shop.

Several banks, meanwhile, have reported that businesses have begun selling more dollars back to the banks, easing recent dollar shortages.

“The new exchange rate and limits on US dollar deposit rates have discouraged businesses from holding dollars” said Asia Food Co director Nguyen Van Tan. “Many enterprises are now willing to sell dollars to the banks.”

”We sell dollars immediately after we get them,” said a representative of Thuan Phuoc Seafood Co, adding that the company was currently receiving about 19,000 VND per dollar from commercial banks.

VNS