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Thursday,  Jun 29,2017,21:19 (GMT+7)

Central forex rate at record high

Hong Phuc
Friday,  Mar 10,2017,23:03 (GMT+7)
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Central forex rate at record high

Hong Phuc

HCMC - The central foreign exchange rate quoted by the State Bank of Vietnam (SBV) over the past four days has soared to an all-time high of VND22,258 per U.S. dollar.

With this rate, the greenback can be traded at between VND21,590 and VND22,926. The informal market rate was VND22,910 on March 9, the highest since the beginning of the year.

Wednesday saw interbank forex trading turning hectic. At the start of the day, the rate opened at VND22,803-22,805 but quickly fell to VND22,785-22,789.

At the close of the session, the exchange rate regained ground and ended at VND22,805. Banks said foreign currency flows from enterprises are steady and foreign currency liquidity remains good.

The dollar on the informal market on the evening of March 8 increased by VND20 for the bid rate and VND5 for the offer rate, trading at VND22,850-22,855.

Interest rates for Vietnam dong on the interbank market continued to rise by 0.05-0.17 percentage point for all tenors. The rate was 4.6% a year for terms ranging overnight to one week.

On March 8, the central bank offered VND2 trillion in seven-day bonds with a coupon of 5%. Credit institutions bought around VND1.14 trillion worth of bonds. That day saw VND601 billion in bonds falling due on the mortgage channel, sending the volume of debt in circulation rising to VND4.93 trillion. No bills were issued while VND5,000 billion worth of bills fell due. Therefore, the central bank net injected over VND5.53 trillion into the system via open market operations.

The U.S. exchange market left some impact on the Vietnam money market. The dollar has strengthened against other major currencies as the Federal Reserve (Fed) is highly expected to hike U.S. interest rates soon.

Investors have priced in possible interest rate hikes this month since Janet Yellen, chair of the Fed, said a rate spike would be forthcoming if employment and inflation continue to improve.

Meanwhile, the gold price continued to fall sharply as the dollar recovered strongly. The spot price of the yellow metal closed down to US$1,209 an ounce on Wednesday, down 0.58%. Domestic gold continued to dip by VND100,000 per tael at VND36.36 million for buying and VND36.61 million for selling. At the moment, domestic gold is VND3 million per tael higher than on global markets. A tael equals to 1.2 troy ounces.

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Giấy phép Báo điện tử số: 321/GP-BTTT, cấp ngày 26/10/2007
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