Vietnamese dong given stable outlook

The dong is forecast to be supported by a positive outlook for foreign inflow. - VNA/VNS Photo

According to analysts from the Saigon Securities Inc, the dong’s stability will be supported as outlook of the country’s disbursement of foreign direct investment (FDI) and foreign indirect investment (FII) capital is optimistic. In the first two months of the year, foreign investors have poured US$8.47 billion into Vietnam, 2.5 times higher than the same period of last year, data from the Foreign Investment Agency under the Ministry of Planning and Investment showed.

Meanwhile, the interest rate’s gap between the dong and the dollar was maintained at reasonable levels of 1.5-1.7 per cent per year, the analysts said.

SSI reports also showed the State Bank of Vietnam has net bought the dollar to date this year to build up the country’s foreign reserves. Earlier, SBV data showed after buying $6 billion last year, it continued purchasing another $4 billion in the first two months of this year thanks to the available US dollar supply in the domestic market.

On March 12, SBV set the daily reference exchange rate at VND22,949 per dollar, down VND1 from the previous day. With the current trading band of +/- 3 per cent, the ceiling rate applied to commercial banks during the day is VND23,636 per dollar and the floor rate VND22,262.

Commercial banks meanwhile kept their rates steadily on Tuesday’s morning.

Vietcombank and BIDV listed the rate unchanged from Monday at VND23,150 per dollar for buying and VND23,250 for selling.

The rates at Techcombank also stayed unchanged at VND23,130 for buying and VND23,250 for selling.