May 2: Vietnam Central Bank Keeps Dollar Exchange At 20,828 dong, Commercial Banks Lower Dollar Prices

Vietnam’s central bank quoted the U.S dollar exchange rate at VND20.828 on Wednesday unchanged for more than 4 months, the longest string since it has been applied but also the highest one.

Commercial banks are allowed to apply effective exchange rate +-1 percent from the official exchange rate set by the central bank, accordingly, the ceiling price for a dollar today was VND21,036 but commercial banks mostly quoted dollar prices below the upper limit.

Some commercial banks lowered dollar prices today and the exchange rates applied ranging from VND20,820-20,850 for bid and VND20,890-20,910 for ask, respectively.

Vietnam’s foreign currency reserves rose to the equivalent 9 weeks of imports from about 7.5 weeks as of mid-2011, the local newswire NDHMoney.vn reported, citing the government’s latest report to the Standing Committee of the National Assembly.

Vietnam targets to adjust the exchange rate by between 2-3 percent this year only, if it is reached, this will be the first year dong is fairly stable after a long streak of much depreciation in the past years.

 

Category: Finance