US dollar devalued against dong despite global rise

Illustrative image (Photo cafef.vn)

The decline was seen in the context of the country’s abundant dollar supply source, while having no demand pressure. Vietnam’s foreign reserves hit record high of more than 57 billion USD till February 6, according to the State Bank of Vietnam (SBV)’s Governor Le Minh Hung.

State-owned Vietcombank on February 8 listed the dollar at 22,650 VND and 22,720 VND for buying and selling, respectively, down 10 VND against the previous day and 25 VND from February 5.

BIDV also cut the buying and selling rate by 25 VND and 15 VND to quote the dollar at 22,650 VND and 22,730 VND, respectively, while the decreasing rate at Vietinbank is 9 VND to 22,652 VND for buying and 22,722 VND for selling.

The same move was also seen at joint stock commercial banks, with a decrease of 15-25 VND per dollar.

ACB devalued the dollar by 20 VND against the previous day to 22,650 VND for buying and 22,720 VND for selling, while Techcombank listed it at 22,650 VND and 22,740 VND for buying and selling, respectively.

The SBV on February 7 also set the daily reference exchange rate at 22,435 VND per dollar, down by 10 VND from the previous day.

With the current trade band of /- 3 percent, the ceiling rate applied to commercial banks during the day is 23,108 VND and the floor rate is 21,762 VND.

In the global market, the dollar was supported after a budget deal in Washington, rising against a broad range of currencies. US congressional leaders reached a two-year budget deal on February 7 to raise government spending by some 300 billion USD. 

The dollar index rose to a two-week high of 90.403 on February 7 and last stood at 90.251./.

VNA