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.

Inflationary pressure may increase between now and the year’s end due to impacts of multiple factors, requiring the Government to take proactive and flexible actions, some experts have said.

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.

The USD/VND exchange rate has seen notable developments in the first month of 2024 when it increased significantly in both official and free markets.

The period of strong volatility of the US dollar has ended, and the US$/VND exchange rate in the last six months of 2023 will remain stable, experts have forecast.

The State Bank of Vietnam (SBV) is cutting down a series of key interest rates by 0.25%-0.5% from June 19, which is expected to make a double impact on the economy thanks to stronger credit activities and higher liquidity.

Entering 2023, investors are choosing investment channels that bring in high profitability amid the current financial market where there are many unprecedented risks.

Amid the US Federal Reserve (FED)’s continuous increases of interest rates to cope with inflation, the most important task for Vietnam now is to keep macro-economic stability, with monetary stability being the core, some economic experts have said.

The State Bank of Vietnam (SBV) has decided to widen the USD/VND spot exchange rate band from +/-3% to +/-5%, effective from October 17.