The foreign exchange rate between VND and USD in July remained stable, after a strong correction in late May, said the MoIT’s Information Centre for Industry and Trade.
The bid and ask prices were at around VND20,870/USD and VND20,900/USD respectively.
The reduction means the foreign exchange market remains stabilized, as the listed price of the greenback in the black market continued to be lower than that listed at the commercial banks.
According to the centre, the short-term adjustment in foreign exchange rate in late July is just a technical move of the local banking system after a period of stabilization.
Local commercial banks have increased the purchase price of the greenback in order to prepare the capital sources for the demand of foreign currency borrowing after the State Bank of Vietnam (SBV) hinted that it would not place a restriction on eligible debtors of foreign currency loans in 2012.
Earlier, the National Financial Supervision Commission (NFSC) said despite the forex fluctuation, the official forex rate is still regularly below VND21,000 per dollar, equivalent to an amplitude of less than 0.8 percent compared with the average exchange rate. It signaled that the interbank exchange rate will remain stable.
On the other hand, both foreign direct and indirect investment inflows continued to show positive signs, it said.
The commission also forecast that there may be no forex risk for those borrowing in USD, as VND’s lending rate has fallen about 15 percent per year, but still higher than dollar interest rates of 4.5 percent per year on average.
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