The State Bank of Việt Nam on Monday set the daily reference exchange rate at VNĐ23,259 per dollar. — VNA/VNS Photo

HÀ NỘI — The US dollar listed at commercial banks has so far this year gained 1.67 per cent against the Vietnamese đồng due to a rise in the global market, but supply and demand for the greenback in the domestic market has remained stable.

On Monday, the State Bank of Việt Nam (SBV) set the daily reference exchange rate at VNĐ23,259 per dollar, up VNĐ7 from the last working day of the previous week, and the seventh consecutive upward adjustment.

With the current trading band of +/-3 per cent, the ceiling rate applied to commercial banks during the day is VNĐ23,956 per dollar and the floor rate VNĐ22,561 per dollar.

Following the SBV’s move, commercial banks continued to increase the dollar strongly during the day.

Vietcombank listed the buying rate at VNĐ23,340 per dollar, and the selling rate at VNĐ23,530, both up VNĐ35 from the previous session.

BIDV also raised both rates by VNĐ35, listing the buying rate at VNĐ23,370 per dollar and the selling rate at VNĐ23,530 per dollar.

Meanwhile, Techcombank added VNĐ60 to the buying rate, listed the rate at VNĐ23,390 per dollar, and raised the selling rate by VNĐ40 to VNĐ23,550 per dollar.

The daily reference exchange rate followed an upward trend throughout the week ending March 20, gaining a total VNĐ30.

The rates listed at commercial banks also rose remarkably, ending the week by around VNĐ200 higher than those on Monday.

On the unofficial market, the dollar on Monday was traded at some VNĐ250 higher than the rate of commercial banks, nearly reaching the threshold of VNĐ24,000, up VNĐ50 against the previous session.

Despite the rise, supply and demand of the dollar in the domestic market has remained stable.

According to experts, the dollar has gained as fresh declines in stocks accelerated the flight to cash.

SBV affirmed that it was ready to sell foreign currency to ensure forex market stability if necessary.

Phạm Thanh Hà, director of the SBV’s Monetary Policy Department, said SBV had the necessary resources, capabilities and instruments to stabilise macro-economic conditions and the monetary market.

Experts also forecast the central bank would try to limit the depreciation of the đồng as the country is still stuck on the US’ currency manipulator watchlist.

According to analysts from Fitch Solutions, a strong foreign reserves position should allow the central bank to safeguard the currency against excessive downside volatility to avoid potential punitive measures from the US due to currency manipulation.

“That said, we believe that the SBV will seek to limit the pace of đồng weakening as Việt Nam remains on the US Treasury’s currency manipulator watchlist,” Fitch analysts said. — VNS