The recent appreciation of the Vietnam dong currency against the U.S. dollar will give the State Bank of Vietnam (SBV) more room to adjust local-currency interest rates to fuel credit growth and stimulates the economy. However, there are still many challenges for monetary policy in the final months of 2024. Lower pressure on monetary policy management The foreign exchange rate has been volatile since the beginning of 2024. The U.S. dollar edged up from VND24,345 per dollar early this year to VND25,450 in April, or a 4.5% increase. It then remained steadily high until July before a sharp decline in August. The main reason is the cooling of the DXY index after a series of bleak monthly job reports and the gradual easing of inflation in the U.S. Lower consumer demand has led to clearer expectations that the U.S. Federal Reserve (Fed) would lower interest rates. The interbank exchange rate in Vietnam has dropped below VND25,000 per dollar for the first time since early April this year. What needs to be assessed about monetary policy in late 2024 is whether the dollar decline against the dong could stay steady over a sufficiently long period. If this is the case, combined […]
The recent appreciation of the Vietnam dong currency against the U.S. dollar will give the State Bank of Vietnam (SBV) more room to adjust local-currency interest rates to fuel credit growth and stimulates the economy. However, there are still many challenges for monetary policy in the final months of 2024. Lower pressure on monetary policy management The foreign exchange rate has been volatile since the beginning of 2024. The U.S. dollar edged up from VND24,345 per dollar early this year to VND25,450 in April, or a 4.5% increase. It then remained steadily high until July before a sharp decline in August. The main reason is the cooling of the DXY index after a series of bleak monthly job reports and the gradual easing of inflation in the U.S. Lower consumer demand has led to clearer expectations that the U.S. Federal Reserve (Fed) would lower interest rates. The interbank exchange rate in Vietnam has dropped below VND25,000 per dollar for the first time since early April this year. What needs to be assessed about monetary policy in late 2024 is whether the dollar decline against the dong could stay steady over a sufficiently long period. If this is the case, combined […]
The recent appreciation of the Vietnam dong currency against the U.S. dollar will give the State Bank of Vietnam (SBV) more room to adjust local-currency interest rates to fuel credit growth and stimulates the economy. However, there are still many challenges for monetary policy in the final months of 2024. Lower pressure on monetary policy management The foreign exchange rate has been volatile since the beginning of 2024. The U.S. dollar edged up from VND24,345 per dollar early this year to VND25,450 in April, or a 4.5% increase. It then remained steadily high until July before a sharp decline in August. The main reason is the cooling of the DXY index after a series of bleak monthly job reports and the gradual easing of inflation in the U.S. Lower consumer demand has led to clearer expectations that the U.S. Federal Reserve (Fed) would lower interest rates. The interbank exchange rate in Vietnam has dropped below VND25,000 per dollar for the first time since early April this year. What needs to be assessed about monetary policy in late 2024 is whether the dollar decline against the dong could stay steady over a sufficiently long period. If this is the case, combined […]
Although deposit interest rates continue rising, predictions about the central bank’s policy rates have shifted significantly. What has led to these new expectations for...
Both supply and demand in the economy are showing more positive signals than before, suggesting that economic growth will continue in the coming quarters....
Recently, there have been recommendations that the 0% interest rate policy for U.S. dollar deposits be lifted given the current situation. However, this policy...
Were interest rates recently hiked to either “harmonize” with foreign exchange rate management objectives, or indicate a shift towards ending the monetary loosening policy...
Experts expect a continued flow of FDI into the country, particularly in the semiconductor industry, and high-tech and value-added products.
A roller-coaster ride
After serving as...