CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
SBV stands ready to sell foreign currency if needed
Ngoc Thuy 09:51, 2018/07/03
The State Bank of Vietnam (SBV) is prepared to stabilize the USD/VND exchange rate amid growing global uncertainties.
The SBV may sell foreign currency at price lower than the current exchange rate, with the aim of stabilizing the macro-economy, said Pham Thanh Ha, head of the Monetary Policy Department (SBV) on July 2. 
 
Pham Thanh Ha, Head of Monetary Policy Department. Source: SBV.
Pham Thanh Ha, head of Monetary Policy Department. Source: SBV.
According to the SBV's website, Ha pointed out two main reasons behind the increasing selling price of USD in the free market, which is now around 1.2% higher compared to the end of 2017. 

Firstly, the increasing USD interest rate in the inter-bank exchange rate is closely related to the global market, while that of VND is still at low level, leading to a sharp appreciation of the USD against the VND.

Secondly, internal and external factors have affected the market psychologically, such as recent slumps of the benchmark VN-Index in the domestic stock market, or a firmer US dollar in the world market. 

The SBV will continue monitoring both domestic and foreign financial market conditions in the time to come, Ha added. "Especially impacts from a stronger USD against other currencies following the FED hinting more aggressive rate hikes this year, a potential escalation of trade tensions between the US and China, as well as moves from the European Central Bank (ECB) and the Bank of Japan (BoJ)."

"Taking into account the domestic demand and supply of foreign currency, the SBV will adopt a more flexible management of the central rate," he stressed.

According to Ha, the SBV will consistently utilize economic and monetary instruments, including the selling of foreign currency to intervene the market. 

SBV's net purchase of foreign currencies exceeded US$11 billion in the first half of 2018, taking the nation’s foreign exchange reserves to approximately US$63.5 billion, said SBV Governor Le Minh Hung at a government meeting on July 2. 
Comments
Other news
15:51, 2025/02/24
Vietnam set to have digital banks within financial centers
Credit institutions headquartered in these financial centers will not be bound by restrictions on to foreign ownership or foreign investment conditions when providing services there or across borders.
14:30, 2025/02/15
Hanoi expands cashless parking pilot program
Hanoi is advancing its efforts to integrate technology into urban management by expanding the pilot program for cashless parking payments throughout the city.
16:58, 2025/02/11
Prime Minister urges banks to prioritize economic support over profits
One of the key priorities for the banking sector is to support small and medium-sized enterprises (SMEs), as they generate a large number of jobs and contribute significantly to the economy.
17:23, 2025/02/07
Vietnamese Gov’t forecasts CPI growth of up to 4.5% in 2025
With the goal of at least 8% GDP growth, the money supply in the economy will be significantly larger than in 2024. This will have an impact on price indices, particularly consumer prices.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.