Recently, commercial banks have listed the selling price of the U.S. dollar at a level close to the ceiling set by the State Bank of Vietnam (SBV). What is piling the pressure on the formal foreign exchange market? The formal market under pressure On November 19, 2024, the central reference exchange rate between the Vietnam dong and the U.S. dollar was set at VND24,293 per dollar, an increase of VND50 compared to the beginning of the month, following a VND150 rise in October. With a trading band of 5% on either side of the central reference rate, the ceiling price for transactions based on the central reference rate is VND25,508 per dollar. On the same day, the selling price of the dollar at Vietcombank was VND25,507, just VND1 below the ceiling rate. In fact, the situation where the selling price of the dollar at banks is at or close to the SBV’s ceiling has persisted for nearly a month, reflecting the high demand for U.S. dollars in the formal market. In October, Vietcombank’s buying price for the dollar surged by VND715, with the selling price increasing even more—by VND725. Since early November, the buying price had continued to rise by […]