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The State Treasury (ST) has just announced its intention to purchase foreign currency from commercial banks, with an expected maximum volume of 150 million USD.
This foreign currency will be purchased for spot settlement on September 6th, with an expected payment date of September 10th. Based on the buying rate of the State Bank’s Trading Center (23,400 VND/USD), the amount ST will spend on this transaction is estimated to be around 3,500 billion VND.
This is the second time since the beginning of the year that ST has announced the purchase of foreign currency from commercial banks. Previously, ST offered to buy a maximum of 100 million USD in mid-May.
ST’s foreign currency purchase takes place amid a backdrop of a weakening USD/VND exchange rate in recent weeks.
As of today (September 5th), the selling rate for USD at banks has dropped below the 25,000 VND mark. Specifically, Vietcombank, the largest foreign exchange trader in the system, has lowered its buying and selling rates by 85 VND from yesterday, now quoting 24,560 – 24,930 VND/USD.
Meanwhile, BIDV reduced its rates by 105 VND in both buying and selling, to 24,585 – 24,925 VND/USD. VietinBank currently quotes 24,595 – 24,935 VND/USD.
Since the beginning of August, the USD rate at banks has decreased by more than 500 VND, equivalent to a nearly 2% drop.
The exchange rate in the free market has also been declining rapidly and is currently trading at 25,200 – 25,240 VND/USD. This is the lowest rate since February. Compared to the peak of nearly 26,000 VND at the end of June, the free market USD rate is now lower by 750 VND, equivalent to a decrease of about 3%.
According to regulations, ST’s purchase of foreign currency from commercial banks aims to meet the foreign currency payment and disbursement needs of the state budget.
ST’s large-scale purchase of USD will increase VND liquidity in the banking system and the economy as a whole.
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