HCMC – The State Bank of Vietnam (SBV), the nation’s central bank, has asked three ministries to coordinate tighter monitoring and enforcement in the foreign exchange market as the U.S. dollar has surged beyond VND27,500 on the informal market.
In an official dispatch issued on October 24 to the Ministry of Public Security, the Ministry of Industry and Trade, and the Government Inspectorate, the SBV said the move aims to maintain market stability and mitigate risks for the banking system amid global economic uncertainties. The central bank noted that the Vietnamese dong–U.S. dollar exchange rate in the informal market has become volatile and a widening gap compared to the rates offered within the banking system.
To ensure compliance and prevent speculative or illegal trading, the SBV has instructed commercial banks to strictly adhere to foreign exchange regulations while urging the three ministries to direct their relevant agencies to inspect and supervise forex-related activities of organizations and individuals, promptly detect violations, and take strict action against unauthorized foreign currency trading.
The SBV requested these agencies to share information about cases involving violations of forex management rules so that appropriate regulatory measures can be promptly implemented to safeguard market order and the stability of the banking sector.
The greenback hits new highs
The U.S. dollar has seen sharp movements over the past four months. By the late afternoon of October 25, it traded at VND27,455–27,575 on the informal market, up VND146 from the previous day.
In contrast, the official exchange rate quoted by the SBV’s transaction office was VND23,894 per dollar for buying and VND26,302 for selling. Major commercial banks posted significantly lower rates, with Vietcombank buying at VND26,082 and selling at VND26,352, while BIDV listed rates of VND26,133–26,352 per dollar.
The widening gap between official and unofficial rates reflects increasing market pressure on the local currency, prompting authorities to step up coordination and enforcement to prevent disorderly speculation and maintain confidence in the dong.
On October 22, the SBV announced a plan to sell US$1.5 billion through 180-day cancellable forward contracts to stabilize the exchange rate, the third time in two months the central bank has intervened in the forex market.
The transactions were conducted with credit institutions holding negative foreign currency positions, at a selling price of VND26,550 per U.S. dollar. The maximum amount sold to each bank in each transaction was set at a level sufficient to bring the bank’s foreign currency position back to balance.
