The State Bank of Vietnam (SBV) on October 24 continued to sharply increase the selling price of the US dollar by 490 VND to 24,870 VND per USD - the highest rise in many years.

The escalation of the US dollar reaching a record high of more than VND24,500 in recent times is anticipated to cause numerous challenges for Vietnamese firms due to the risk of exchange rate differences, according to insiders.

The State Bank of Vietnam decided to widen the USD/VND spot exchange rate band from +/-3 percent to +/-5 percent effective from October 17 continued to put pressure on the Vietnam dong to depreciate and the US dollar to appreciate.

The State Bank of Vietnam today continued to set the exchange rate for the US dollar up VND17 to VND23,497 per US dollar.

The Vietnamese dong may lose 4 percent of its value against the USD in 2022, while the deposit interest rate is predicted to lose 30-50 points after the US FED’s move and SBV’s first policy responses.

What came as a surprise is that after two stressful weeks, the foreign exchange rate on August 29 showed signs of stabilizing though the U.S. dollar climbed further on global markets.

Experts have given many noteworthy recommendations for Vietnam’s economy, with emphasis on the need to ensure the stability of the dong/dollar exchange rate.

The State Bank of Vietnam (SBV) decided to sharply increase the selling price of the US dollar by 300 VND to 23,700 VND/USD on September 7.

The Vietnamese dong currency remains remarkably stable while other currencies are sliding against the U.S. dollar. This situation makes foreign exchange rate management increasingly difficult. Foreign exchange rate under pressure.

The recent fluctuations in the US dollar and Japanese yen have both positive and negative impacts on Vietnamese traders, according to experts of the Ministry of Industry and Trade (MoIT).

The State Bank of Vietnam is facing multiple pressures in 2022 in managing the foreign exchange rate

The State Bank of Vietnam (SBV) has so far this year sold about 12-13 billion USD to stabilise the domestic forex market, according to Viet Dragon Securities Corporation (VDSC).

The Japanese yen has been depreciating recently, causing Vietnamese guest workers’ incomes to shrink.

The US Dollar Index (DXY) at 9.15 pm on July 5 (Vietnam time) surged to 106.5 points, a 20-year high in the history of the greenback. The State Bank of Vietnam (SBV) has begun taking action.

The Vietnamese dong has appreciated by around 2 percent against the US dollar in the last eleven months of this year. It is now to be seen whether this trend will continue in the coming year or not.

The US Treasury has removed Vietnam  from the list of countries labeled as currency manipulators.

Vietnam’s economy was adversely affected by the COVID-19 pandemic in 2020, along with natural disasters and the impact of trade conflicts.

Capital has become very cheap with the Vietnam dong interest rates in the interbank market having fallen to a four-year record low, according to the Vietnam Interbank Market Research Association.

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.