Vietnam’s foreign reserves surge 2.5 times over 2015
Vietnam's foreign reserves are estimated to hit $75 billion. — VNA/VNS Photo
Hung did not mention the exact figure, but local media quoted a close source saying SBV has bought US$16 billion so far this year, which has helped raise the national foreign reserves to $75 billion.
Earlier, SBV reported the country’s foreign reserves stood at $73 billion by the end of October.
The amount of foreign currencies the central bank has purchased this year is much higher than the $11 billion it bought in 2017 and the $6 billion in 2018.
Sufficient foreign reserves have been a key source to help the country prevent adverse impacts caused by external factors, Hung said, adding that the reserves would continue to be used for active intervention in the monetary market, ensuring currency stability.
According to Hung, the USD/VND exchange rate and the foreign exchange market has been stable while the liquidity of the market has been good throughout the year, even though the trade war caused the Chinese yuan to fall to its weakest level against the US dollar in 11 years.
The stability of the forex market has helped the SBV further build up the country’s foreign reserves over the year, Hung noted.
Experts attributed the stability to the SBV’s flexible central rate management mechanism, which ensured the domestic foreign exchange market was less affected by global factors.
In addition, the domestic US dollar supply-demand relationship was relatively stable thanks to foreign currency supply from exports, foreign investment, official development assistance, tourism and remittances.
The rise in the country’s foreign reserves was reported in the context of the foreign exchange rate in the domestic market being relatively stable. According to the central bank, liquidity of the domestic foreign exchange market was good and met the demands of local organisations and inpiduals.
The SBV set the daily reference exchange rate at VND23,162 per US dollar on December 26, down 1 dongfrom the previous day.
With the current trading band of +/-3 per cent, the ceiling rate applied to commercial banks during the day is VND23,857 per dollar and the floor rate VND22,467 per dollar.
Analysts forecast it is highly possible the SBV would continue buying foreign currencies in 2020 to increase the national forex reserves. It is difficult to say how much it would buy, but if the US and China can find an agreement in trade, it would not be a surprise if the central bank buys another $10-15 billion.
Related News
Vietnam is ready to welcome a new wave of investment in the semiconductor industry
16:08 | 15/05/2024 Headlines
Opportunities for Vietnam to participate in the global semiconductor industry value chain
11:34 | 15/05/2024 Import-Export
Ho Chi Minh City: Enterprises overcome difficulties, exports lead the country
14:58 | 10/05/2024 Import-Export
What to do to develop Vietnam's creative economy?
10:06 | 11/05/2024 Headlines
Latest News
Improve processes and enhance experience to rebuild trust in life insurance
20:25 | 17/05/2024 Finance
PM chairs meeting on fiscal, monetary policy management
20:20 | 17/05/2024 Finance
Many tax management solutions for e-commerce
10:01 | 16/05/2024 Finance
Completely resolve problems and accelerate public investment disbursement
14:41 | 15/05/2024 Finance
More News
Tax, land rent payment deadlines to be extended this year
14:21 | 15/05/2024 Finance
Tax compliance management in the digital economy
11:32 | 15/05/2024 Finance
Hai Phong: Budget revenue reached more than VND40,000 billion
13:57 | 14/05/2024 Finance
Price adjustment should be in implemented in appropriate time to control inflation
13:56 | 14/05/2024 Finance
Fiscal policy is expanded and flexible to promote economic growth 2024
13:28 | 13/05/2024 Finance
Closely follow the situation, research and propose many solutions about taxes and fees to support the economy
08:16 | 12/05/2024 Finance
Prevent corruption and group interests in developing financial laws
10:07 | 11/05/2024 Finance
"Creativity in revenue collection to achieve set goals in difficult contexts"
14:55 | 10/05/2024 Finance
Strive to effectively implement Global Minimum Tax in Vietnam
10:22 | 10/05/2024 Finance
Your care
Improve processes and enhance experience to rebuild trust in life insurance
20:25 | 17/05/2024 Finance
PM chairs meeting on fiscal, monetary policy management
20:20 | 17/05/2024 Finance
Many tax management solutions for e-commerce
10:01 | 16/05/2024 Finance
Completely resolve problems and accelerate public investment disbursement
14:41 | 15/05/2024 Finance
Tax, land rent payment deadlines to be extended this year
14:21 | 15/05/2024 Finance