Vietnam’s foreign exchange reserves have hit a new record, the State Bank of Vietnam (SBV) told the regular government meeting on July 3.

SBV Governor Le Minh Hung said that foreign exchange reserves continued to increase in the first half of this year, reaching approximately $42 billion and up from the $41 billion at the end of 2016.

The higher reserves are the result of trade going into deficit while exchange rates remain stable. The SBV has devalued the Vietnam dong against the US dollar three times this year, in January, April, and June. Stability remains despite the US Federal Reserve raising interest rates.

Mr. Hung added that foreign currency liquidity was good in the first half, meeting supply and demand.

It is possible the US Fed will increase interest rates again this year, he said. The SBV will actively monitor domestic and international market movements, taking measures to control exchange rates, ensure foreign currency liquidity, and avoid speculation. 

“The SBV will have sufficient measures to control and stabilize exchange rates at the direction of the government,” SBV Governor Le Minh Hung said.

Foreign exchange reserves were $20.7 billion in June 2008, falling to $12.58 billion in January 2011, then rising to $22-23 billion by the end of 2012.

VN Economic Times