The monetary market’s liquidity has remained stable and foreign currency supply and demand are relatively balanced amidst the uptrend of USD/VND exchange rates over the last few days, an official from the State Bank of Vietnam (SBV) has assured.

Exchange rates have tended to increase since late April, but the market’s liquidity
and legal demand for foreign currencies have been still ensured, according to
a central bank official (Photo: VNA)

Director of the SBV’s Monetary Policy Department Pham Thanh Ha said on May 21 that the exchange rate hike was mainly driven by the market’s concern about the possibility of US-China trade talks worsening and the continuous depreciation of the Chinese yuan since late April.

After the central bank listed the USD buying rate at 23,200 VND per USD on January 2, exchange rates in the market stayed relatively stable until mid-April. Therefore, the SBV purchased a large amount of foreign currencies to raise foreign exchange reserves, thus helping to consolidate the national financial-monetary security and improve the capability of making interventions when necessary.

Exchange rates have tended to increase since late April, but the market’s liquidity and legal demand for foreign currencies have been still ensured, he said.

On May 21 morning, the SBV set the reference exchange rate at 23,069 VND per USD, up 23 VND from May 8, when the rate reached a record high.

At 8:15 am, Vietcombank posted the buying rate at 23,345 VND/USD and the selling rate at 23,465 VND/USD, up 15 VND from the same time of May 20.

BIDV offered the respective rates at 23,350 – 23,470 VND/USD, up by 20 VND. Techcombank posted 23,325 VND/USD (buying) and 23,465 VND/USD (selling), up 15 VND.

Ha said the central bank will continue keeping a close watch on both the domestic and foreign markets to set the daily reference exchange rate in a flexible manner. It will also use synchronous measures and policy tools to stabilise the market.

If necessary, the SBV is ready to sell foreign currencies at suitable prices to keep the market and macro-economy stable, the official added.