Strong dollar demand may lift exchange rate

HANOI: High demand for the US dollar from the State Treasury could continue to cause the dollar/dong exchange rate to increase.

The State Treasury has offered to buy a total of US$500mil from commercial banks in the past three weeks.

The purchase of the dollar took place in the context that the dollar/dong exchange rate at banks has recently increased rapidly. As the demand for the greenback in the market remains high, the purchase of the large amount of dollars will continue to strengthen the rise of the exchange rate.

Previously, the State Bank of Vietnam (SBV) also said that the dollar/dong exchange rate was under a lot of pressure in 2024, partly due to the Finance Ministry’s high demand for the dollar to pay foreign debts.

Currently, the dollar listed at banks is fluctuating around 25,700 dong per dollar for selling and 25,300 dong for buying.

Compared to the closing price before the Lunar New Year holiday, the dollar selling price at banks has increased by about 400 dong per dollar, while the buying price has risen by about 600 dong.

Thus, within just half a month, the dollar/dong exchange rate listed at banks has increased by between 1.6% to 2.4%.

The dollar/dong exchange rate on the interbank market is also fluctuating, around 25,500 dong per dollar.

The dollar/dong exchange rate at banks has continuously increased in the context that the SBV has strongly raised its central exchange rate. — Viet Nam News/ANN