SBV assurance calms foreign exchange fears
After hovering at the ceiling rate set by the State Bank of Vietnam for three days, the dollar pulled back a little on August 27 after the central bank promised no more devaluation is in the offing, with almost all banks reducing their selling rate by VND25-35.
The greenback had soared after the dong was recently devalued by 1% for a third time this year: With the inter-bank rate set at VND21,890, the wider daily trading margin of 3% meant the dollar shot up to VND22,547 and remained there.
But on August 27, two days after the SBV assurance, most other lenders except Agribank cut their exchange rates.
The Technological Commercial Bank (Techcombank) sold at VND22,540 while Vietcombank, Asia Commercial Bank, DongABank, VietinBank, and BIDV all sold at VND22,510.
The buying rates were between VND22,410 and VND22,480.
Le Duc Tho, General Director of Vietinbank, said the exchange rate has stabilised, adding banks have been reassuring clients who fear further depreciation of the Vietnamese currency.
Phan Thanh Son, Director of Techcombank's Treasure and Markets said the SBV's reassurance has steadied the exchange rate and helped improve liquidity.
In the grey market too, the dollar has dropped.
Most money changers on Ha Trung street in Hanoi sold the dollar at VND22,550-22,570 on August 27, as much as VND100-150 down from August 24.
But on August 27, two days after the SBV assurance, most other lenders except Agribank cut their exchange rates.
The Technological Commercial Bank (Techcombank) sold at VND22,540 while Vietcombank, Asia Commercial Bank, DongABank, VietinBank, and BIDV all sold at VND22,510.
The buying rates were between VND22,410 and VND22,480.
Le Duc Tho, General Director of Vietinbank, said the exchange rate has stabilised, adding banks have been reassuring clients who fear further depreciation of the Vietnamese currency.
Phan Thanh Son, Director of Techcombank's Treasure and Markets said the SBV's reassurance has steadied the exchange rate and helped improve liquidity.
In the grey market too, the dollar has dropped.
Most money changers on Ha Trung street in Hanoi sold the dollar at VND22,550-22,570 on August 27, as much as VND100-150 down from August 24.