SBV to hold exchange rate steady

14:17 | 01/09/2015 Economy

The State Bank of Viet Nam has said it would hold the exchange rate steady till the end of the year and also in the early months of 2016.

SBV to hold exchange rate steady

Vietcombank listed the dollar buying and selling rates at VND22,500 and VND22,547, respectively, while the rates of BIDV and Vietinbank were VND22,510 and VND22,547, respectively, the same as yesterday. — Photo doanhnhansaigon

The bank's statement came after the dollar-dong exchange rate on August 24 touched the cap of VND22,547 set by the central bank.

SBV Deputy Governor Nguyen Thi Hong said the change in the forex market in late August was due to psychological factors and speculative rumours.

Hong said with the goal of stabilising the market, the central bank had prepared a set of necessary measures and tools and was willing to intervene by selling foreign currencies to stabilise the exchange rate and the market within the set band.

In August, the central bank increased the exchange rate by one per cent and widened the trading band to three per cent.

Hong said the above adjustment was very strong as the central bank was preparing for volatility, including further devaluation of the Chinese yuan and a possible Fed rate rise in the next few months.

"With the adjustment, the SBV has given the Vietnamese dong ground large enough to be flexible against adverse developments on both the domestic and international markets, not only in the final months of the year but also into the early months of 2016, bringing stability to the currency market and ensuring the competitiveness of Vietnamese goods," Hong said./.

Source: VNS