Exchange rate to be stable in 2016
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% 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% in 2016 while the Hong Kong-Shanghai Banking Corporation (HSBC) forecast a 3-4% increase. Several economists said that the exchange rate would be up around 3% this year.
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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% in late 2011 to around 10% currently – the lowest rate recorded so far.
