Latest News about exchange rate
The US Treasury has removed Vietnam from the list of countries labeled as currency manipulators.
The dollar price has decreased since the second half of March, with the dong/dollar exchange rate in the interbank market falling to VND23,200 per dollar last week.
The dollar price has decreased significantly from VND23,500 per dollar to VND23,300, though current factors are not supporting the exchange rate. This could be a great opportunity for Vietnam’s enterprises.
As the dollar price has decreased in the international market, the official exchange rate announced by the State Bank of Vietnam (SBV) and dollar market price have also decreased slightly.
Experts say investors should target investment channels with high liquidity such as savings accounts, gold and dollars, and wait patiently for opportunities with stocks.
Explaining the appreciation of the US dollar recently, Nguyen Duc Do from the Finance Academy said that in the current uncertainty, investors have sold their assets and sought shelter in the dollar.
The VND is predicted to lose 1.2 percent of its value in 2020, which will put Vietnam at a disadvantage in attracting FDI.
The US dollar price has been increasing sharply over the last two weeks.
Depositing money at banks is prefered by most people who have idle money. However, it is now less attractive than corporate bonds and gold.
SSI Research says the financial market in 2020 will be unpredictable and much less active than the forecasts released at the end of 2019.
The State Bank of Vietnam (SBV) has many times affirmed that Vietnam has no intention of devaluing the local currency to gain advantages in trade with its partners.
The official dong/dollar exchange rate announced by SBV reached a peak of VND23,206 per dollar on February 4, an increase of VND36 per dollar compared with the time before Tet.
Vietnam plans to buy more electricity from neighbouring countries, but a big loss of VND3.09 trillion is pending.
As one of the fastest-growing economies, Vietnam still needs to reduce regulatory burdens and promote economic integration to achieve the country’s sustainable development goals through 2030.
Vietnam is one of 10 countries in the latest watchlist for currency manipulation released by the US Treasury Department.
The Vietnamese dong (VND) would average just slightly weaker by around 1 percent to VND23,475/USD in 2020 due mainly to an predicted decrease in foreign direct investment (FDI) inflows and higher imports.
The BIDV’s sale of shares to South Korean investor, the technology upgrading race among banks and a series of moves taken by the central bank are the highlights of 2019.
The State Bank of Vietnam (SBV) bought a record high amount of foreign currencies this year. The same is expected in 2020.