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SBV calms forex fluctuations

Update: June, 05/2014 - 09:21
A bank teller counts US dollars for a customer. — VNS file photo
HA NOI (VNS) — Commercial banks pushed the US dollar rate to the ceiling on Monday, spurring the central bank to lower its selling price yesterday in a bid to calm the market.

The foreign exchange fever led to many banks listing the US dollar rate at or near the ceiling price of VND21,246 per USD.

Both Vietinbank and Techcombank lifted their selling price to the highest rate of VND21,246 per USD, while others, including Asia Commercial Bank, Eximbank, BIDV, Maritime Bank and Sacombank, are selling one USD at VND21,245.

Vietcombank sold at the lower price of VND21,240.

During the past two days, banks have raised the exchange rate by VND40-50 per dollar, lifting the rate to its highest-ever level.

In a quick move to calm the market, the State Bank of Viet Nam (SBV) yesterday morning adjusted down its selling price from VND21,246 on Monday to VND21,240.

According to the SBV's Monetary Policy Department, the central bank is still closely monitoring the situation.

The last time banks pushed up the USD forex to the ceiling was in July last year. At that time, banks even offered dual rates. This meant companies had to buy dollars at higher prices than the listing rates.

The deputy general director of a commercial bank said movements on the forex market reflected changes in demand and supply, but confirmed the rate hike was in line with State Bank regulations.

According to analysts, the situation is not alarming as the distance between the buying and selling rates is modest from VND60-90 per USD at most banks. This shows that dollar demand has not climbed to and intense level.

Two weeks ago, in response to unusual developments on the forex market, the SBV said it would sell foreign currency to stabilise the market. Earlier in April, Governor of the State Bank said the exchange rate would be kept stable until the end of the year and any adjustments would not exceed 1 per cent. — VNS


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