The State Bank of Vietnam on February 11 devalued the dong by 3.36 percent against the US dollar in a move it said would help balance demand and supply, control the trade deficit, and stabilize the economy.
The average interbank rate Thursday was VND18,544 to the dollar against VND17,941 the previous day.
With the central bank maintaining the 3 percent daily trading band for commercial banks for buying and selling the dollar, the maximum exchange rate now is VND19,100.
Eximbank is buying at VND18,600 and selling at VND19,100, ABBank at VND19,000 and VND19,100, and Vietcombank at VND18,600 and VND 19,100.
On the open market, the dollar jumped to VND19,500-19,600 yesterday, an increase of VND300-400 from the previous day.
This is the second devaluation in the last three months after the SBV had reduced the dong’s value by 5.44 percent in last November.
Some analysts spoke to SGGP about the devaluation.
The adjustment was expected, Dr Tran Huy Hoang, head of the banking faculty at the Ho Chi Minh City Economics University, said. It was necessary to bring the official rate closer to the open market price.
Following the devaluation, banks are able to buy more dollars, benefiting exporters and stabilizing the foreign exchange market, he said.
Ho Dieu, deputy headmaster of the HCMC Banking University, said a big gap between the SBV and open market rates had existed for a long time, causing instability in the forex market.
The devaluation would help exports, reduce the trade deficit, and stabilize the economy, Dr. Dieu said.
Truong Van Huynh, deputy general director of Baoviet Bank, said the new rate is not only more practical but would also help prevent speculation in the greenback.
Pham Quoc Thanh, deputy general director of ABBank, said it would encourage businesses to sell dollars to banks.
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