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Dollar stays up against dong
The US dollar continued to strengthen against the dong due to an increase in import demand.
On May 15, Vietcombank’s listed USD/VND exchange rate was 16,150/16,163 VND with the interbank rate at 16,003 VND.
This meant a selling price in the upper range of a +/-1 percent trading band.
Bank rates listed on May 15 were up about 2.22 percent against the lowest rate so far this year, 15,800/15,930 VND on March 26, and about 0.12 percent against the same days last week.
The strong demand for greenbacks was obvious on the open market where the currency traded at about 16.550 VND yesterday morning, against 15,400 VND in March.
The dollar supply is reported to be limited between April and August every year a import demand surges. Yet commercial banks are already lacking critical dollars for lending.
Money for imports is likely to put more pressure on the central bank’s foreign reserve of about 22-23 import weeks.
A Vietnam News source at the central bank confirmed they had enough money to support the US dollar liquidity of banks. However, any sales needed thorough consideration.
When the central bank sold too many dollars, they had to then pump an equivalent amount of money in dong into circulation to control the exchange rate. Such an influx could then result in an unexpected drop in the dong.
“The central bank has been working on the issue,” he said.
VNA
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