VietNamNet Bridge – The dollar price has been increasing these days because of the slight demand increase. However, the dong/dollar exchange rate is believed to get stabilized by early July 2013.

Commercial banks all have raised the dollar selling price to the ceiling level of VND21,036 per dollar. The State Bank’s Exchange late last week quoted the selling price at VND21,360 per dollar.

Just within half a year, Vietnam’s foreign trade has gone from one extreme to another. However, both the trade deficit and trade surplus cause worries.

 VietNamNet Bridge – The State Bank of Viet Nam denied speculation last week that it was preparing to adjust the exchange rate.

Since commercial banks have lowered the interest rates, depositing has become less attractive in the eyes of investors.

VietNamNet Bridge – Importers and exporters have urged the State Bank of Vietnam to slash the dollar interest rates further to 5 percent per annum.

At the Na Meo Market in Na Meo commune of Quan Son district in Thanh Hoa province, buyers and sellers can use three currencies, including Vietnam dong, Lao kip and US dollar, in making payment.

The dollar price quoted by commercial banks and the price in the black market bounced back earlier this week. However, after that, the dollar price has decreased again.

VietNamNet Bridge – While economists have urged to devaluate the local currency to help boost exports, the central bank believes that it’s not the right time to do this.

The dollar price has been fluctuating so heavily since the market re-opening after the Tet holiday. However, experts believe that this does not mean the start of the dong depreciation wave.

VietNamNet Bridge – The stabilizing of the dong/dollar exchange rate over the last two years has made the local currency depreciate by 20 percent, which has hindered exports.

VietNamNet Bridge – A big amount of foreign currencies has been sold by people recently since they, after weighing pros and cons, decided that it would be better to keep dong than dollars.

It is highly possible that the State Bank of Vietnam would not make commitments on a fixed maximum depreciation of the local currency in 2013, but a flexible exchange rate policy would be pursued.

The State Bank of Vietnam has been taking drastic measures to implement its plan to stop the capital mobilization and lending in foreign currencies.