HCMC – The exchange rate between the U.S. dollar and the Vietnamese dong is forecast to move in a range of VND23,288 and VND23,515 per dollar by the end of 2020, up 0.5-1% versus early this year.
This is thanks to the country’s rising foreign exchange reserves and stable demand and supply of foreign currencies, according to a report recently released by the BIDV Research and Training Institute.
As of August 31, the interbank exchange rate remained at VND23,175 per dollar, up a slight 0.01% compared to the figure recorded early this year.
Meanwhile, the central exchange rate between the greenback and the dong released daily by the State Bank of Vietnam only rose by 0.19% over the start of the year.
At local commercial banks, prices of the U.S. dollar remained stable regardless of the strong volatility of gold prices.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, quoted the selling and buying prices of the U.S. dollar at VND23,270 and VND23,060, respectively.
At the Vietnam Export Import Bank, or Eximbank, one U.S. dollar was bought at VND23,080 and sold at VND23,250, lower than the rates at Vietcombank.
There are many reasons behind the stabilization of the exchange rate, said a representative of a HCMC major commercial bank, adding that among them is the fact that the hoarding of U.S. dollars has been subdued as other investment options such as gold and securities have become more attractive and the 2020 inflation rate was predicted to stay at just 3.5-3.8%.
Further, the country had banned gold imports and the central bank has tightened its control over the production of SJC gold bars. Accordingly, the recent upsurge in the price of gold had almost no impact on the exchange rate.