Interbank exchange rate tops VND20,708

The State Bank of Vietnam continued to increase its interbank US dollar exchange rate by VND20 per dollar to VND20,708 last weekend, the strongest gain since February 9.

It raised the rate for seven times in the past ten days, totaling VND80, or 0.39 percent. Earlier, the central bank affirmed that it would lift up the interbank exchange rate by not more than 1 percent until the end of this year. After the central bank’s latest adjustment, most commercial banks traded dollars at the ceiling price of VND20,915 per dollar. Eximbank bought dollars at VND20,910 per dollar and sold at VND20,915 per dollar. The greenback was bought at VND20,870 and sold at VND20,915 at VietinBank.

Meanwhile, the US dollar exchange rate was rather stable on free market. In Ho Chi Minh City, dollars were purchased at VND21,430, and sold at VND21,480. The gap between official and free rates narrowed due to the central bank’s changes. A profuse supply of the US currency on free market also made its price cool down. Moreover, the difference between local and global gold prices lessened, curbing demand for the greenback. Earlier, domestic gold fetched VND3-4 million per tael higher than global price, spurring demand for dollars to smuggle gold.

By Diu Ngan – Translated by Thuy Doan

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