Central bank expands dollar trading band to 5%

The State Bank of Vietnam widened Monday the USD/VND daily trading band to 5% from the previous 3%.

This means the U.S. dollar at commercial banks can be traded up to 5% higher or lower than the central exchange rate announced by the State Bank (SBV) on a daily basis.

The adjustment aims to help Vietnam proactively deal with unpredictable developments in international markets, and the monetary tightening by the U.S. Federal Reserve and other central banks around the world, the SBV said.

The SBV added it would continue to closely monitor market developments, coordinate monetary policy tools, and be ready to sell foreign currencies to stabilize the domestic market.

On Monday morning, Vietnam’s central exchange rate was VND23,586 per U.S. dollar, up VND45 compared to the end of last week.

At 8:30 am, BIDV bank listed the buying rate at VN23,935 and the selling rate at VND24,215, both down VND15 from last Friday. Vietcombank kept both rates unchanged at VND23,920 and VND24,230, respectively.