SBV acts to minimise impact of yuan devaluation

August 12, 2015 | 19:27

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The State Bank of Viet Nam (SBV) this morning widened the dong's trading band in a move to minimise the negative impact of China's currency devaluation on August 11.

SBV this morning widened the dong's trading band in a move to minimise the negative impact of China's currency devaluation on August 11. Photo AFP

SBV announced on its website that the local currency could now trade as much as plus or minus two per cent of the fix by the central bank, instead of one per cent previously. The dong's fix today is 21,673, the same as yesterday.

With the adjustment, the dong/US dollar ceiling rate is 22,106 and the floor rate is 21,240.

After the SBV move, all commercial banks raised their dollar selling rates this morning to nearly touch the central bank's ceiling rate, up roughly VND200 against yesterday.

With the adjustment, the dong/US dollar ceiling rate is 22,106 and the floor rate is 21,240. Photo vietnamnet

Vietcombank and BIDV have listed the buying and selling rates at VND21,960 and 22,040 per dollar, respectively, while Vietinbank's rate is VND21,970 and 22,100, respectively. The rates at Eximbank and ACB are VND21,980 and 22,100, respectively.

The SBV move comes after China devalued its yuan's reference rate yesterday by 1.9 per cent after a run of poor economic data.

"The move is aimed at reducing the negative impacts on the Vietnamese economy and at ensuring the competitiveness of Vietnamese goods in the global market," the central bank said in the statement.

The adjustment follows two devaluations of the dong this year, by one per cent each, in January and May.

VNS

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