August, 15 2011 09:14:58

State Bank plans to increase dong to dollar value

HA NOI — The State Bank of Viet Nam plans to increase the value of the Vietnamese dong against the US dollar over the next four months in a bid to protect the value of the domestic currency, State Bank Governor Nguyen Van Binh told Sai Gon Economic Times this week.

"Since February, the real value of Vietnamese dong has risen slightly," Binh said.

"If necessary, the central bank will consider further adjustment of the exchange rate," he added. "The primary target of foreign exchange policy is to stabilise the dong and keep it under control, not to fix it. Confidence in the domestic currency has been fading and we must immediately restore that confidence, which is vital to economic stability."

Binh advised the public that holding onto the dong was the best policy to keep people from flocking to invest in gold and to reduce dollarisation of the economy.

Strategies to protect the dong would include deposit interest rate reform that created predictable interest rates at levels of around 14 per cent for dong deposits and 2 per cent for US dollar deposits, he said.

Recent dollar speculation on the foreign exchange black market was a move to take advantage of soaring global gold prices, he added.

"In fact, the demand for dollars to pay for imports is not high, and even petrol importers are not demonstrating a high demand for dollars," Binh said. "The nation's foreign reserves are sufficient to offset any imbalance in the supply of and demand for dollars."

The central bank bought up over US$4 billion in the first seven months of the year. At the Consulative Group Meeting in June, the International Monetary Fund estimated that Viet Nam's foreign reserves totalled $13.5 billion, equivalent to 1.5 months of imports. Yesterday, banks quoted buy/sell rates of VND20,814/VND20,824 per dollar, while the greenback traded for under VND21,000 on the black market.

Last Tuesday, as domestic gold prices soared to an all-time record of VND46 million ($2,203) per tael, the dollar was traded at VND21,300 on the black market and around VND20,810 at banks. — VNS

Bro Mike - papasmoke333@yahoo.com   Bro Mike
January, 11 2015 07:14:30
Dong currency go up in price!
ricardo flores - frico1950@yahoo.com   ricardo flores
September, 03 2014 22:46:01
What all the talk that the Dong would increase as much as $2.00 to the US dollar. That little hard to believe. I can see $00.25 cents to the dollar.how do you see it in the coming three months?
Send Us Your Comments:
Your E-mail address:

VietNamNews may edit your comments and not all emails will be published.


Environmental issues hinder new rural areas Environmental issues hinder new rural areas

In the five years since the Government put in place Decision No 49/QD-TTg on 19 criteria for new-style rural areas for the 2010-20 period, the majority of communes across the nation fail to meet the 17th criterion on environment. Both local and central authorities find it difficult to fill all five norms, as set down.

Baby vaccinations remain a cause for concern Baby vaccinations remain a cause for concern

Parents are concerned about post-vaccine reactions after the recent death of babies after receiving Quinvaxem vaccine, although the Health Ministry has repeatedly confirmed the safety of the vaccine.

Photos strengthen confidence of Mong girls Photos strengthen confidence of Mong girls

Wearing her most beautiful dress, Vu Thi Vu smiles broadly as she shows to her friends one of her photos which are on display at the Can Chu Phin secondary school in Meo Vac district of northernmost Ha Giang Province.

Lack of fire safety a risk in high-rises Lack of fire safety a risk in high-rises

Negligence and ignorance of fire safety regulations by both investors and residents at high-rise buildings have again come to the fore following the latest blaze in Ha Noi.