Dong dips to new low against the greenback
In this article (5)
The U.S. dollar strengthened against the Vietnamese dong on Tuesday as the central bank upped its reference rate.
The State Bank of Vietnam (SBV) set its highest-ever reference rate for the greenback at VND22,686 on Tuesday, up VND10 from last Saturday.
Eximbank and Vietcombank were selling the U.S. dollar for VND23,350 at 10:29 a.m. Tuesday, up VND10 from last Saturday.
A recent report by the Ho Chi Minh City Securities Corporation (HSC) estimates that the SBV has sold about $2.5 billion in total since July, intervening to keep the exchange rate stable.
The report forecast that the U.S. dollar will continue to strengthen against the dong to reached VND23,500 in the upcoming months.
The SBV might sell $6-12 billion of its foreign exchange reserves by the end of this year, including the amount it has already sold, the HSC report said.
Experts have forecast the dollar to rise by 3 percent this year against the dong.
Questions & Answers
Q.What was the new reference rate set by the State Bank of Vietnam for the U.S. Dollar on Tuesday?
What was the new reference rate set by the State Bank of Vietnam for the U.S. Dollar on Tuesday?
The State Bank of Vietnam set its highest-ever reference rate for the U.S. Dollar at VND22,686 on Tuesday. This figure was an increase of VND10 from the previous Saturday's rate.
Q.How much has the State Bank of Vietnam reportedly sold in U.S. Dollars since July to stabilise the exchange rate?
How much has the State Bank of Vietnam reportedly sold in U.S. Dollars since July to stabilise the exchange rate?
According to a report from Ho Chi Minh City Securities Corporation, the State Bank of Vietnam has sold an estimated $2.5 billion in total since July. This action was taken as an intervention to maintain exchange rate stability.
Q.What is the forecast for the U.S. Dollar's value against the dong in the coming months?
What is the forecast for the U.S. Dollar's value against the dong in the coming months?
The Ho Chi Minh City Securities Corporation report forecasts that the U.S. Dollar will continue to strengthen against the dong. It is expected to reach VND23,500 in the upcoming months.
Q.How much more foreign exchange reserves might the State Bank of Vietnam sell by the end of this year?
How much more foreign exchange reserves might the State Bank of Vietnam sell by the end of this year?
The HSC report suggests the State Bank of Vietnam might sell between $6 billion and $12 billion of its foreign exchange reserves by year-end. This total includes the amount already sold since July.
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