Major banks in Vietnam on Friday morning lowered both selling and buying prices of the U.S. dollar after a central banker said the monetary regulator would intervene to stabilize the forex market.
Vietcombank, the largest forex trader in the country, reduced the price of the greenback by 20 dong to 22,670 for buying and 22,770 for selling. The quote was revised up to respective 22,680-22,780 in the afternoon.
State-run BIDV and VietinBank both adjusted down the price of the U.S. dollar by 10 dong to 22,680 and 22,780 for bids and asks, respectively.
The USD/VND rate has hit the all-time high and is expected to surpass the 23,000 dong threshold in the upcoming month, a banker told Saigon Times.
The State Bank of Vietnam (SBV
) set the mid-point USD/VND rate at 22,137 for Nov. 25, up six dong from a day earlier. USD prices can move by -3/+3 on the either side of the daily fixing.
Prices of the U.S. dollar at gold shops in Hanoi increased by 110 and 90 dong to 22,910 for buying and 22,950 for selling. Since the U.S. presidential election, USD prices on the unofficial market have risen 620 dong, according to VnEconomy.
Late on Nov. 24, SBV Deputy Governor Nguyen Thi Hong told local media that there were not dramatic changes in the demand for foreign currency and all legitimate demands were met by banks.
The surge in the USD/VND rate over the past days was caused by psychological factors, she added.
The rate may “take a U-turn in the time to come,” the central banker noted.
“The State Bank of Vietnam will monitor closely macroeconomic and monetary developments domestically and internationally to take proper actions and regulatory tools to keep the market stable, including selling forex to make interventions,” Hong said.