Reference, interbank exchange rates fluctuateDuc Nam HCMC – The average daily reference exchange rate between the Vietnam dong and the U.S. dollar set by the State Bank of Vietnam (SBV) has become strongly volatile in recent days. Meanwhile, the interbank exchange rate has fluctuated too while the SBV has not bought the greenback in the past two weeks. The exchange rate was VND22,318-22,320 to the dollar on the interbank market on Monday morning, and skidded to VND22,315 in the afternoon session before climbing to VND22,328 at the end of the day. The central bank on Tuesday announced the reference rate at VND22,033 to the dollar, up slightly from the previous session. This means commercial banks could trade the dollar in the range of VND21,372 and VND22,694. Credit institutions said higher dollar demand of foreign-invested enterprises was behind the dollar spike against the dong. They expected the dollar would continue strengthening in the next few days and may beat the … [Read more...] about Reference, interbank exchange rates fluctuate
Treasury exchange rates
(VOVworld) - US Secretary to the Treasury Jacob Lew has urged China to hasten the process of the liberalisation of its currency Renminbi ahead of the two countries' economic conference next month. Lew told Wang Yang, China's Deputy Premier, in a phone call on Monday that Beijing needed to quickly adopt a system for the exchange rate under market mechanisms. Lew said that Renminbi's current exchange rate for the USD was too low and it should be floated in line with market developments to minimise the trade gap. … [Read more...] about US urges China to adjust exchange rate of Renminbi
VietNamNet Bridge – In order to keep the interest rate gap between the USD and the VND attractive, the interest rates for the VND have not been reduced. Surprisingly, while the Consumer Price Index (CPI) has increased very slowly or has decreased, the deposit interest rates have remained unchanged. The General Statistics Office (GSO) announced that the CPI in September decreased by 0.21 percent compared with the month before. The figure did not surprise analysts, who had heard that both Hanoi and HCM City had reported minus inflation rates in their localities. However, the deposit interest rates remained high. As a result, the real positive interest rate has increased to 5-6 percent. This means the real profit that depositors can pocket after deducting the CPI increase is 5-6 percent per annum. In previous years, the figure was just 2-4 percent. Analysts believe that the interest rates won’t be decreasing towards the end of the year. They think that it would be … [Read more...] about Should the interest rate be cut or the exchange rate stabilized?
US Treasury Secretary Timothy Geithner has kicked off the G20 meeting in Nanjing with a call for more consistency in international currency exchange rates. Mr Geithner said tight control of currency pricing by some countries was hurting global economy. The United States and other developed nations have been critical of China's exchange rate policy. The meeting is being attended by some of the financial world's biggest names. Mr Geithner said that the Group of 20 nations was working closely to put in place a system that would streamline the exchange rates globally. "We have been engaged in a multilateral effort in the G20 to establish stronger norms for exchange rate policy," he said. China has been pushing for the yuan to become a global reserve currency. That push got a big boost as the French President, Nicolas Sarkozy, suggested that given the importance of emerging economies such as China to global growth, their currencies should be added to the … [Read more...] about Timothy Geithner seeks uniform exchange rate policy
Group of 20 finance leaders will pledge on October 23 to commit themselves to pursue market-determined exchange rates and refrain from "competitive devaluation" of their currencies. A communique to be issued at the conclusion of G20 finance ministers' and central bank governors' meeting will state: "We're all committed to moving toward market determined exchange rates that reflect underlying fundamentals and refrain from competitive devaluation," said an official. A US official separately said the United States had no expectation its proposal of setting numerical targets on external balances would be mentioned in the G20 statement. The US proposal, aimed at pressing countries with surpluses such as China to let their exchange rates rise, met with a cool reception on the first day of a two-day meeting meant to smooth the path for a G20 summit in Seoul on November 11-12. China was against any limits on imbalances, another G20 source said on October 22. He also said there … [Read more...] about G20 statement to pledge commitment to exchange rates