Illustrative photo (Source: VNA) Hanoi (VNS/VNA) – The State Bank of Vietnam (SBV) bought 8.35 billion USD from credit institutions between the beginning of this year and April 17 to build up the nation’s foreign reserve. According to report recently sent by the SBV to the National Assembly’s Economic Committee, SBV said the USD/VND exchange rate and the foreign exchange market was relatively stable while the liquidity of the market was also good in the first four months of the year. With the additional purchases, it is estimated Vietnam’s foreign reserve has hit some 67.35 billion USD, double the level recorded three years ago. The stability of the forex market has helped the SBV further build up the country’s foreign reserves over the past year. The central bank last year also net purchased 6 billion USD, according to SBV Governor Le Minh Hung. Analysts from the Fitch Group’s Fitch Solutions Macro Research also forecast that the ample foreign exchange reserves would help the SBV continue its course of active intervention to ensure currency stability, which suggests the Dong is likely to see minimal volatility over the coming months. Fitch also predicted Vietnam’s exchange market would remain stable this year, supported by the country’s robust foreign direct investment (FDI), a healthy current account surplus and by the central bank’s active intervention. “The Dong will weaken slightly against the dollar to 23,700 VND by the end of the year and average 23,440 VND per dollar over 2019, which represents a 1.8 percent depreciation from the average in 2018,” the analysts said… [Read full story]
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