Chủ đề: foreign currency

There is rising demand for USD due to the trade balance being in deficit and from many foreign enterprises transferring profits back to their parent company at the end of the fiscal year. In response, the State Bank of Vietnam (SBV) has offered USD in three-month terms for the first time since 2018 to support liquidity.

With the USD consolidating its strength while the risk of inflation in Vietnam is increasing, the KB Securities Company (KBSV) believes that the USD/VND exchange rate may increase slightly, in the range of 0.5-1 per cent, during 2022. The small increase is due to the stable supply of foreign currency.

The USD/VND exchange rate has been quite high in recent days, with the State Bank of Vietnam (SBV) and market operators stopping commercial banks from receiving funds to conduct foreign exchange spot transactions. Despite the fact that no more money was injected into the system and that credit accelerated, liquidity in the banking system remained abundant. This is most evident in interest rates remaining flat at the lower end.

Data from SSI Research shows that the State Bank of Vietnam’s purchase of foreign currency from commercial banks has injected some VND60 trillion ($2.64 billion) into the market, helping reduce the interbank interest rate.

Many banks have recently introduced preferential policies on foreign currencies for import-export enterprises, such as preferential loans, financial support through import financing services, foreign exchange support, reasonable fees, and free international money transfer for new corporate customers.

As a popular destination for FDI, Vietnam also welcomes a large inflow of foreign currencies. The country’s banking system has maintained low interest rates, which is in line with ongoing trends, as central banks around the world are applying loosened monetary policy.