Amid the fluctuation of the global financial market, the exchange rate in Vietnam has remained stable in the first four months of this year, and the Vietnam dong has been considered one of the most stable currencies in Asia, according to experts.
Economic instability across the entire globe is bound to affect Vietnam as well. Although economic data for Vietnam shows that difficulties have been overcome, but the fact remains that scores of businesses are still struggling.
Many financial experts are now blaming rising interest rates by central banks across the world and the current geopolitical changes across the globe for the drastic plunge in liquidity in the stock market.
If Vietnam still maintains macroeconomic stability as well as keeps inflation under control, capital market plus money market are basically stable without major changes in the third quarter, the country’s GDP growth rate is expected to reach more than 7 percent.
Taking into account the exchange rate fluctuations of the three main currencies, including USD, JPY, and EUR, the Government's outstanding debt by the end of 2022 is estimated to decrease by about VND57 trillion, down 2 percent compared to the outstanding balance at the end of 2021.
Over the last few years, foreign exchange reserves in Vietnam have continually and steadily been increasing. This source has now become a stable buffer for the State Bank of Vietnam (SBV) to manage the exchange rate, especially during the last two crucial years under the ongoing Covid-19 pandemic.
The State Bank of Vietnam continued to raise reference exchange rate by VND10 per dollar on May 15 sending the US dollar exchange rate against the Vietnamese dong to a new record high of VND23,064 per dollar.