The State Bank of Viet Nam continued to adjust the interbank exchange rate yesterday to VND20,738 per US dollar, the lowest level for the dong since April.

State Bank Governor Nguyen Van Binh has vowed that the adjustments would not exceed a cumulative total of 1 per cent before the end of the year, but the adjustments over the past 10 days have totalled 0.54 per cent so far, or a total of VND110 per dollar.

The State Bank set a ceiling rate for commercial banks of VND20,945 per dollar.

Forex rates at major commercial banks also increased accordingly. Vietcombank and Vietinbank hiked their buy/sell rates by VND5 to VND20,940 and VND20,945 per dollar, while Eximbank, Asia Commercial Bank and DongA Bank posted buy/sell rates of VND20,925 and VND20,945.

On the black market, the greenback settled at a buy/sell rate of VND21,500/VND21,550, up VND50 per dollar from Wednesday.

Former State Bank Governor Le Duc Thuy said that if the central bank carried out proper policies, the exchange rate should stabilise and the black market rate remain below VND22,000 per dollar from now until the end of the year.

Domestic gold prices, meanwhile, declined dramatically yesterday as global prices also declined. As of 4pm yesterday, Sai Gon Jewelry Ltd Co (SJC) listed buy/sell prices for gold at VND42.8 million (US$2,045) and VND43.12 million ($2,060) per tael, with one tael equivalent to 1.2 ounces – a decline of VND900,000 per tael from Wednesday's price.

At the same time, the world spot price on the London Bullion Market was $1,620.20 per ounce.

Lower gold prices were also the result of lower demand for gold from individual investors after two weeks during which five banks and SJC have sold gold at prices close to the global price.

VNS