The statement was made by Nguyen Quang Huy, Head of the Foreign Exchange Management Department under the SBV, in response to the current rapid increase in the VND/US$ exchange rate which hit VND17,500/US$ on the free market on May 27.

It’s worth noting that many people sometimes sell out US$ at a low price, but sometimes they buy large volumes of US$ which helps drive up the foreign currency to a higher rate. Moreover, these people may face the risk of purchasing counterfeit US$ on the free market without State management.

Mr Huy affirmed that to maintain a suitable exchange rate between the VND vs US$ based on the domestic market’s supply and demand, the foreign exchange rate will continue to be adjusted towards a stable level. The VND/US$ exchange rate in 2008 is likely to fluctuate at 2 percent in accordance with the Prime Minister’s guidelines.

The SBV will continue to make direct interventions in the foreign currency market in order to ensure an adequate supply of foreign currency for the national economy.