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SBV assures no further dong/dollar exchange rate changes

The State Bank of Vietnam (SBV) will not make any further adjustment to the Vietnam Dong/US Dollar exchange rate this year, SBV Deputy Governor Nguyen Thi Hong said in a press release issued late on August 24. 

The statement was made following the recent Vietnam Dong weakening against the US Dollar, notably on the interbank markets where the Dong fell to its bottom of 22,547 VND/USD on August 24. The depreciation was mainly due to psychological factors amid China’s surprise devaluation of its Yuan currency and probably rumors attempting speculation, the SBV official explained. She reassured that the SBV will undertake various interventions to stablise exchange rates through early 2016. 
She noted that the SBV’s adjustment to the trading band of Vietnam Dong/US Dollar was a pre-cautionary move, taking into account the possibility that the US’s Federal Reserve Bank (Fed) will make a liftoff in interest rates. However, the Fed would tiptoe around this decision after China devalued its Yuan against the US dollar, Ph.D Le Xuan Nghia, an economist said.

Source : Le Courrier du Vietnam

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