SBV Increases Exchange Rate Band by Additional 2%

SBV decision to adjust the trading band of the USD/VND spot rate from +-3% to +-5%

According to SBV, since the beginning of 2022, the U.S. Federal Reserve (Fed) and many major central banks (CBs) have accelerated the tightening of monetary policy, swiftly raising key interest rates. The conflict between Russia and Ukraine has continued to disrupt global supply chains, causing oil and commodity prices to soar, leading to uncontrollable inflation in many economies… all of which have caused significant fluctuations in both international and domestic markets.

In response to this situation, SBV has proactively and flexibly applied a comprehensive set of tools, solutions, and interventions to maintain the stable and smooth operation of the money and foreign exchange markets, thereby contributing to macroeconomic stability, controlling inflation, and supporting the realization of the objectives set forth in the Economic and Social Recovery and Development Program according to National Assembly Resolution 43 and Government Resolution 11.

To proactively adapt to the unpredictable developments of the international market and the orientation to continue tightening monetary policy and raising interest rates by the Fed and global CBs, on October 17, 2022, SBV issued Decision No. 1747/QD-NHNN stipulating the spot exchange rate between the Vietnamese dong and foreign currencies of authorized credit institutions. The trading band of the spot exchange rate between the Vietnamese dong and the U.S. dollar (USD) has been adjusted from +-3% to +-5%.

SBV will continue to closely monitor market developments, coordinate with comprehensive monetary policy tools, and is ready to sell foreign currency for intervention to stabilize the market.

Huy Thang

According to the Government Portal

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