Vietnam Sets New Record High Exchange Rate Ahead of Fed Meeting
The State Bank of Vietnam has set a new record high for its daily reference exchange rate, setting it at 25,626 VND/USD. This is an increase of 9 VND from Tuesday's rate and comes just before the U.S. Federal Reserve's upcoming policy meeting.
The trading band remains at +/- 5%, with a ceiling rate of 26,907 VND/USD and a floor rate of 24,345 VND/USD. Commercial banks such as Vietcombank, Vietinbank, and SeABank have adjusted their rates accordingly, with buying and selling rates ranging from 25,775 to 26,190 VND/USD.
According to Dr. Can Van Luc, chief economist at state-controlled BIDV, the trade deficit has some impact on the foreign currency balance and exchange rate, but not a significant one. He attributes this to the support of foreign currency flows such as disbursed FDI, remittances, and international tourism.