On February 15th, the State Bank of Vietnam announced a central exchange rate of 23,976 VND/USD, which is a 20 VND/USD increase compared to the pre-Tet holiday closing rate.
The USD rates at commercial banks also saw a significant increase on the first working day of the Year of the Tiger. Vietcombank exchanged USD at 24,270 VND/USD for buying and 24,610 VND/USD for selling, which is a 40 VND increase per USD compared to the pre-Tet holiday.
Eximbank’s rates were slightly higher with 24,290 VND/USD for buying and 24,610 VND/USD for selling. Meanwhile, ACB listed the rates at 24,300 VND/USD for buying and 24,600 VND/USD for selling.
USD rates at banks increase after Tet holiday
In the free market, the USD rates remained high at around 25,000 VND during the Tet holiday. This morning, some foreign exchange counters in Ho Chi Minh City quoted buying rates at 25,010 VND/USD and selling rates at 25,090 VND/USD, which is an 80 VND increase per USD compared to yesterday.
The free market rates are about 400 VND/USD higher than the rates at banks. Regarding the exchange rates in the first quarter of 2024, Mr. Ngo Dang Khoa, Director of Foreign Exchange, Capital Market, and Securities Services at HSBC Vietnam, believes that the USD/VND exchange rate will continue to face upward pressure in the current context of Vietnam’s policy priority focusing on supporting growth, while in contrast, the US has maintained a tight monetary policy due to higher-than-expected growth figures and slowly cooling core inflation, according to the US Federal Reserve.
VND liquidity in the interbank market may continue to remain good as there have not been significant changes in credit growth and disbursement speed of public investment, at least in the first quarter of this year. The US dollar in the international market is expected to maintain its strength in the early months of 2024, while the Chinese yuan (CNY) continues to weaken amidst a slower-than-expected economic recovery in China.
“The exchange rate outlook for the whole year of 2024, especially in the latter half, will improve when the aforementioned factors reverse, particularly when the USD peaks and domestic economy and credit growth gradually recover. It is forecasted that the USD/VND exchange rate will fluctuate around 24,400 VND/USD at the end of this year,” said Mr. Ngo Dang Khoa.
