Credit growth across the banking sector reached 15.08% as of the end of 2024, exceeding the year’s target of 15%, according to Standing Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.

A strong US dollar will still be a major factor influencing the USD/VND exchange rate in 2025, causing the Vietnamese dong to depreciate by about 3% against the dollar, experts forecast.

The latest US Federal Reserve (Fed)’s announcement to make fewer interest rate cut next year immediately impacted the USD/VND exchange rate.

The USD/VND exchange rate is not forecast to be under great pressure at the end of this year, if the US Federal Reserve (Fed) continues to cut interest rates at its meeting this month, experts said.

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VND exchange rate pressure, experts said.

The move came as the dollar index (DXY) hovered around a four-month high of more than 105, with the market welcoming Donald Trump's victory in the US presidential election.

The US dollar may further strengthen against the Vietnamese dong to hit VND25,400 per dollar at the end of this month, according to experts.

After cooling down in August 2024 and bottoming out at the end of September, the USD/VND exchange rate has shown signs of increasing again since the beginning of October.

With a sharp depreciation of the US dollar against the Vietnamese dong, the State Treasury has continuously bought large amounts of the greenback from commercial banks.

The State Bank of Vietnam (SBV) has shortened terms and kept the interest rate of its bills unchanged to increase the attractiveness of the bill channel, which will help raise the interbank interest rates and reduce pressure on the USD/VND exchange rate.