Central bank looks to stabilize exchange rateThe Saigon Times Daily HCMC – Though the domestic currency is getting firmer against the U.S. dollar, the central bank aims to stabilize the exchange rate to support exports, Nguoi Lao Dong newspaper reported. The U.S. dollar-Vietnam dong exchange rate is forecast by a Standard Chartered research group to ease to around VND22,650 in quarter two and VND22,600 at the end of the year, largely owing to the greenback’s devaluation against major currencies over the past several weeks. A senior official of the central bank was quoted by the newspaper as saying that with record foreign reserves of nearly US$55 billion and the continued buying of foreign currencies in the past days, the central bank is capable of interfering in the market and keep the exchange rate stable. The central reference rate on Monday was VND22,426 to the dollar, allowing banks to trade the greenback within a band of 3% either side. The dollar price quoted … [Read more...] about Central bank looks to stabilize exchange rate
Lao exchange rate
VietNamNet Bridge - The Vietnamese finance market has been shaken by a number of events in recent days. Like the global market which tumbled on August 12 because of China’s decision to devalue the yuan, the stock market has been volatile as the State Bank has widened the trading band by one percent to two percent. The exchange rates applied by commercial banks can be no higher or lower than two percent than the official dong/dollar interbank exchange rate announced daily by the State Bank. Soon after the announcement was released, the dollar price soared, exceeding the VND22,000 per dollar threshold. Nguoi lao dong commented that Vietnamese securities investors did not remain calm amid the rapid-fire bad financial news. As investors hurried to sell stocks, the stock market witnessed a gloomy trading session on August 12 with the VN Index of HCM City Stock Exchange (HOSE) dropping by 8.81 scores, or 1.44 percent, to 604.24 scores and the HNX Index dropping by 1.3 … [Read more...] about Bourse staggers as exchange-rate widens, gold soars on yuan devaluation
The book, Dealing with Multiple Currencies in Transitional Economies: The Scope for Cooperation in Cambodia, the Lao People's Democratic Republic, and Viet Nam, says working closely together on monetary and financial issues would allow the three Southeast Asian countries to increase stability and introduce common best practices and regulatory standards. Greater regional dialogue on these issues could also help them to improve the effectiveness of their monetary and exchange rate policies, while reaping greater benefits from their increasing economic interdependence. As well as the local currency, people in Cambodia, Lao PDR, and Viet Nam often use other countries' currencies to conduct business. The US dollar is the main alternative currency, in a practice called dollarization, although additional currencies are also in wide circulation. It is believed that the share of foreign currencies range from around 20% of all currency in circulation in Viet Nam, about 50% in Lao PDR, and more … [Read more...] about Cambodia, Lao PDR and Vietnam encouraged to cooperate on dollarization
VietNamNet Bridge - The US dollar prices have been stabilized and decreasing over the last month. Most experts, both foreign and Vietnamese, believe that the dong/dollar exchange rate will be stabilized towards the end of the year, though they still can see risks. … [Read more...] about What will be the exchange rate like by the year end?
The State Bank of Vietnam on December 14 unexpected devaluated the dong by another 0.05 percent after the 40-day period of keeping the dong value unchanged. However, people still keep calm with the move. As such, the dong has lost 0.9 percent of its value since September 7, 2011, when the State Bank made the commitment not to devaluate the dong by more than one percent until the end of the year. The latest adjustment of the dong/dollar exchange rate is not big, and the dong devaluation level is still within reach. However, the move by the State Bank has also caught the attention from the public because it roused the long lasting quietness. Right after the new official exchange rate was announced, commercial banks have quoted new dollar prices with the sale prices having been pushed up to the new ceiling levels of 21,021 dong per dollar. Meanwhile, the Bank for Investment and Development of Vietnam BIDV and Eximbank have both raised the buy price to 21,000 dong per dollar. … [Read more...] about SBV adjusts exchange rate once more, but market keeps stable