State Bank of Vietnam: The exchange rate is performing quite normally.

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The demand on foreign currency has not been put pressure to increase because the credits are still controlled at a reasonable level by the SBV

The SBV indicated that during the first ten months of 2016, the exchange rate and foreign currency market is basically stable, the speculation psychology of foreign currency has fallen more sharply than before due to the new flexible exchange rate mechanism and favorable movements on foreign currency supply and demand

Therefore, the SBV has bought a large volume of foreign currency to increase the State’s foreign currency speculation. This volume is estimated at $US 40 billion - a record - high level by the National Financial Supervisory.

However, recently, the exchange rate has tended to increase quite sharply, constantly is on the top position since the SBV applied the policy of central exchange rate announcement.

Accordingly, the central exchange rate listed by the SBV on 18 November 2016 was 22.112 VND/USD , an increase of 11 vnd compared to the day before. Hence, from the transaction session at the beginning of the week (14 November) until now, the exchange rate rose by 55 vnd.

At commercial banks, the exchange rate from 17 October also had a sharp increase. Typically, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) exchange rate rose from 22.3210 - 22.380 VND/USD for buying – selling on 16 November to 22.375 – 22.445 VND/USD on 17 November. The morning session on 18 November, the exchange rate has continued to raise 20 vnd both for buying and selling.

Other commercial banks also have an increase of the exchange rate as above, about 20-30 vnd compared to 17 November.

A statement released in the evening of 17 November, the SBV said that the exchange rate in the interbank market at the transaction session on 17 November was 22.450 VND/USD higher than the average rate of the first months of 2016 but this rate is still lower by 50 vnd than the rate at the end of 2015.

From the above performance, the SBV assessed that the demand on foreign currency has no unexpected factors and is well-liquidated, the demands on legal foreign currency of organizations are individuals are responded to timely and fully.

From now to the end of 2016, the SBV confirmed that the foreign currency supply and demand is performing favorably due to financial sources such as disbursement of direct foreign investment capital, capital inflows from trading,merging and remitting from oversea Vietnamese people to the end of 2016.

The demand on foreign currency has not put pressure to increase because the credits are still controlled at a reasonable level; part of the foreign currency demand of customers will be met by foreign currency credit sources of the banking system as the SBV continues to extend the foreign currency loans to the end of 2017; the flexible operation of exchange rates in both directions has declined the speculation of foreign currency status. In addition, the SBV issued Circular No.15/2015 / TT-NHNN on October, 2015 which limited organizations and individuals to buy foreign currency for immediate payment before maturity date for payment demands to a foreign country has not put increased pressure on foreign currency in the market

Reference exchange rate sinks VND6 The State Bank released the reference exchange rate for VND USD on the first day of November ...

In the coming time, the SBV acknowledged that they will closely monitor the developments of domestic and global macroeconomics and monetary movements to release appropriate measures and executive tools to reach the proposed objectives of monetary polices to stabilize macroeconomic balances.