On February 15, the State Bank of Vietnam announced the central exchange rate at 23,976 dong/USD, an increase of 20 dong/USD compared to the closing price before the Tet holiday.
The USD exchange rate at commercial banks also saw a significant increase on the first working day of the Year of the Snake. Vietcombank traded USD at 24,270 dong/USD for buying and 24,610 dong/USD for selling, an increase of 40 dong per USD compared to before the Tet holiday.
Eximbank bought USD at a higher rate, 24,290 dong/USD for buying and 24,610 dong/USD for selling. Meanwhile, ACB listed the buying rate at 24,300 dong/USD and the selling rate at 24,600 dong/USD.
USD exchange rate increases after Tet holiday |
In the free market, the USD exchange rate remained high around 25,000 dong during the Tet holiday. Today, some foreign exchange counters in Ho Chi Minh City reported buying rates of 25,010 dong/USD and selling rates of 25,090 dong/USD, an increase of about 80 dong per USD compared to yesterday.
The free USD exchange rate remained about 400 dong/USD higher than in banks. Regarding the exchange rate in the first quarter of 2024, Mr. Ngo Dang Khoa, Director of the Foreign Exchange, Capital Markets, and Securities Services Division of HSBC Vietnam, said that the USD/VND exchange rate still faces upward pressure in the current context of Vietnam’s policy priority on supporting growth, while in contrast, the United States, with higher-than-expected growth figures and slower-than-expected core inflation, has led the Federal Reserve to maintain its extended tightening policy.
VND liquidity in the interbank market may continue to remain good due to the lack of significant changes in credit growth and disbursement speed of public investment, at least in the first quarter of this year. The USD in the international market is expected to maintain its strength in the early months of 2024, while the Chinese yuan (CNY) continues to weaken in the context of China’s slower-than-expected economic recovery.
“The exchange rate outlook for the whole year of 2024, especially in the second half of the year, will improve when the aforementioned factors reverse, particularly when the USD reaches its peak and domestic economy and credit growth gradually recover. The forecasted USD/VND exchange rate will fluctuate around 24,400 dong/USD by the end of this year,” Mr. Ngo Dang Khoa said.
Thai Phuong
