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Sunday,  Feb 25,2018,07:12 (GMT+7)

Vietnam’s foreign reserves rise to all-time high

The Saigon Times Daily
Thursday,  Feb 8,2018,23:40 (GMT+7)
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Vietnam’s foreign reserves rise to all-time high

The Saigon Times Daily

HCMC – Vietnam’s foreign reserves have shot up to a record high of over US$57 billion, news website Vietnamplus cited Le Minh Hung, governor of the State Bank of Vietnam (SBV), as saying.

Since early this year, the central bank has bought US$4 billion on top of US$13 billion purchased last year thanks to stable monetary and foreign exchange policies, said Hung. The large volume of foreign reserves is extremely important to enhance Vietnam’s prestige and position.

SBV adjusted exchange rates and bought foreign currencies in line with market movements last year, thus helping stabilize foreign currency and gold markets, meeting the demand for foreign currencies and supporting export activities.

The central bank has taken measures to stabilize the money market since early this week, according to VnEconomy.

Notably, the central bank has stopped issuing promissory notes, decreasing the value of such debt in the system to VND22 trillion (US$0.97 billion) from the previous VND50 trillion.

In the lead up to the Lunar New Year holiday, or Tet, the demand for payments in Vietnam dong has been surging, thereby causing interest rates for Vietnam dong loans to rise on the interbank market but sending down the exchange rate between the U.S. dollar and Vietnam dong.

After a period of stability since late last year, the U.S. dollar traded at banks has weakened slightly against the local currency. It has fallen from VND22,745 to VND22,740 at Bank for Foreign Trade of Vietnam (Vietcombank).

On the interbank market, the greenback was traded at VND22,707 per dollar on February 7 while the buying price at the SBV Operations Center stayed at VND22,710.

According to commercial banks, the central bank will continue to net buy foreign currencies, some US$400-500 million a day.

The interbank interest rates for Vietnam dong had picked up by 0.42-0.54 percentage point to 2.18%, 2.36% and 2.96% for one-year, one-week and two-week tenors respectively by Tuesday.
 

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