The State Bank of Vietnam (SBV) announced the adjustment of the average inter-bank VND/USD exchange rate from 21,246 to 21,458 (by +1%) applicable from January 7, 2015. With the band of ±1% against the average inter-bank exchange rate, the ceiling VND/USD exchange rate is 21,673 and the floor rate is 21,243.
The adjustment of exchange rate aims at implementing Resolution No.01/NQ – CP dated January 3, 2015 on on the key tasks and solutions to regulate the implementation of the Plan of Socio-Economic Development and Budgeting in 2015. Accordingly, the SBV is tasked to manage monetary policy in a proactive and flexible manner in close coordination with the fiscal policy in order to control the targeted inflation, stabilize macro-economy, and support economic growth…, manage the exchange rate in line with the macro –economic developments, inflation and money market.
In 2014, in spite of fluctuations in the international financial market, the domestic forex market and exchange rate developed stably, the average inter-bank VND/USD exchange rate rose by 1%, the legitimate foreign exchange requirements of organizations and individuals were met fully and promptly by credit institutions, and the SBV continued to buy foreign currencies to increase the international reserves. These are the results from the SBV’s consistent measures of managing monetary policy and foreign exchange as well as SBV’s commitment to continue maintaining the exchange rate stability in 2014, thereby contributing to improving confidence in VND.
After six months of maintaining the average inter – bank VND/USD exchange rate at 21,246, the SBV adjusted the exchange rate for the aim of proactively regulating the market in accordance with the situations in the domestic and international financial market, and create the sustainable stability in the forex market. The SBV will consistently conduct measures and monetary policy tools in order to stabilize exchange rate and forex market in line with the new common exchange rate.
The State Bank of Vietnam
Translated by Le Hang