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Sunday,  Sep 24,2017,13:57 (GMT+7)

Dollar firmer as central bank hikes prices

Hong Phuc
Wednesday,  Jun 21,2017,22:29 (GMT+7)
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Dollar firmer as central bank hikes prices

Hong Phuc

HCMC – The U.S. dollar strongly appreciated against the domestic currency on June 20 as the State Bank of Vietnam raised the dollar buying price and the reference exchange rate.

The dollar was bought and sold at VND22,725 and VND22,730 on the inter-bank market on June 20 afternoon, rising VND33 and VND38 against last Friday respectively. On the informal market, the prices increased VND10 and 25 to VND22,700 and VND22,730 for buying and selling respectively.

The central bank’s reference rate also advanced VND5 from the previous day at VND22,422, allowing local banks to trade the greenback within a range of VND21,750 and VND23,094.

On Monday, the central bank hiked the dollar buying price by VND50 to VND22,725 after maintaining the previous level at VND22,675 since April 11. The selling price was VND23,070, or VND20 lower than the cap.

Due to the price hike, the dollar price moved up strongly to VND22,725 on the inter-bank market on Monday afternoon. Besides, the central bank also quoted the reference exchange rate at VND22,417 to the dollar, up VND7 compared to last Friday.

The market did not view the moves as surprising since the central bank had been predicted to raise the dollar price gradually to deal with trade deficit and safeguard economic stability. However, banks and enterprises with more assets and debts in dong than in those in foreign currency may see some disadvantages.

Local banks have estimated the greenback to oscillate from VND22,690 to VND22,760 this week. Meanwhile, interbank lending rates in dong inched up by between 0.06 and 0.18 percentage point after falling steadily last week, ranging from 2.28% to 3.58% per annum for tenors from overnight to one month. Lending rates in the U.S. dollar also rose slightly by 0.01 to 0.05 percentage point.

However, the dollar slightly fell on the world market. The safe-haven gold followed suit, losing around US$2 from the previous day to US$1,243.35 an ounce.

In Vietnam, the yellow metal was quoted at VND36.15 million and VND36.45 million per tael for buying and selling respectively, higher than the world price by around VND2.14 million per tael. A tael equals to 1.2 troy ounces.

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