US$ Rising, VND Devalues

The greenback on the black market has increased VND30-40 to the dollar over the previous days, posting VND16,050/US$1 in Ha Noi and VND16,040/US$1 in Ho Chi Minh City on August 6.

Late last week, the State Bank of Vietnam (SBV) announced an inter-bank exchange rate at VND15,974/US$1.

In related news, interest rates offered by commercial banks for US$ deposits have increased by 0.2-0.4% annually on average, while lending rates have risen by 0.2%.

Experts believed that commercial banks will consider raising the interest rate on US$ deposits and loans as the US Federal Reserve may raise its interest rate to 5.5% on August 8.

Exchange on the black market exceeded the VND16,000/US$1 rate a month ago, and now for the first time rate at commercial banks, considered the official rate for the nation, has exceeded this threshold.

According to many analysts, the exchange rate will not return to VND16,000 on the dollar again when the VND gradually devalues.

By B.M – Translated by Trong Khuong

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