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Tuesday, July 23, 2024

SBV seen buying up to US$12 billion in 2023

By N.Tan

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HCMC – KB Securities Vietnam Joint Stock Company (KBSV) has forecast that the State Bank of Vietnam (SBV) might buy US$10-12 billion this year to shore up the country’s foreign reserves.

The SBV, the nation’s central bank, bought around US$2 billion on January 11 and 13 when the dollar-dong exchange rate was VND23,450 per dollar.

A new KBSV report said that the dollar-dong exchange rate would rise to VND24,380 per dollar in the first quarter of 2023 as the U.S. Federal Reserve (Fed) will end its interest rate hikes at the end of the first quarter this year.

The ample supply of foreign currency makes it possible for the SBV to step up dollar buying to increase foreign reserves.

Foreign investment capital (FDI) started to recover from the end of November last year, indicating FDI flows would grow in the future.

Rising remittances from abroad to Vietnam will help stabilize the nation’s foreign currency supply, according to the HCMC branch of the SBV.

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