|
Higher exchange rate makes dollar supply more profuse
Right after the State Bank of Vietnam announced the increase of the interbank exchange rate by 3%, the supply of dollars on the market immediately improved. The exchange rates on the black market and the rates quoted by commercial banks are nearly the same. A new exchange rate dynamic is taking shape.
The first day after the new interbank exchange rate was announced, there were big gaps in the exchange rates offered by commercial banks. However, the gaps have since narrowed.
On December 29, Vietcombank’s quoted exchange rate was VND17,430-17,494/US$1 (purchase and sale). Asia Commercial Bank’s (ACB) sale price was just VND4/US$1 lower than Vietcombank’s rate. Meanwhile, the Bank for Investment and Development of Vietnam (BIDV) and Techcombank quoted identical exchange rates.
On the same day, the exchange rates on the black market were VND17,400-17,500/US$1.
Market observers say that those who have a demand for dollars have not been purchasing dollars in the black market. Moreover, banks have taken back licences for currency exchange from gold shops under the new regulations on keeping strict control over currency exchange agents, which has also helped make the black market quiet.
As the interbank exchange rate increased by nearly VND500/US$1, people and businesses have sold more dollars to banks, thus improving their supply. The higher exchange rate has also prompted commercial banks to sell dollars to other banks.
Vietcombank’s General Director Nguyen Phuoc Thanh said that purchases have been bigger than sales in the last few days.
Deputy Director of Techcombank’s Capital Source Centre Nguyen Viet Anh has also confirmed that more clients have sold foreign currencies to the bank, while export companies are not trying to stock up on dollars at present.
Banks nowadays offer big gaps between purchase and sale prices, from VND50 to VND100 per one dollar. In order to attract more sellers, a lot of banks will purchase dollars at prices higher than the quoted prices.
Analysts say that the high and stable exchange rates will encourage export companies to sell dollars to banks right after they get payment from foreign partners for exports. Meanwhile, people will make deposits in VND instead of dollars, as US$ interest rates have been decreasing, while VND interest rates have been increasing.
NLD
|
