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.
Several countries are raising interest rates in an effort to curb inflation, even though higher interest rates can push economies into even deeper recession.
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 price of gold in Vietnam continued to escalate by VND600,000 per tael (1.2 ounces) to above VND48 million per tael on March 30 although the global gold price retreated to near US$1,600 an ounce.
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.
The State Bank of Vietnam raised reference exchange rate by VND10 per dollar to VND23,040 per dollar on May 7, the highest level since the central bank first applied this mechanism in 2016.
The exchange rate between the US dollar and Vietnamese dong was listed at VND22,868 at the end of January, an increase of VND40 per dollar from a level of VND22,828 at the beginning of January.
State Bank of Vietnam (SBV) Governor Le Minh Hung said yesterday he was confident that the dong/dollar exchange rate will remain stable for the foreseeable future.
