Central exchange rate hits all-time high of VND24,036

The State Bank of Vietnam (SBV) increased the central exchange rate to VND24,036 per U.S. dollar on Friday, another record high.

The previous peaks were VND24,005 on September 11 - the first time the rate had exceeded the VND24,000 milestone, and then VND24,013 on September 14.

Since the beginning of this year, the USD has appreciated 1.8% against the Vietnamese dong.

Per the SBV's trading band of +-5%, commercial banks could set their exchange rates between VND22,834 and VND25,237. The central bank set the reference exchange rate at VND23,400-25,187.

Exchange rates at major banks in Vietnam moved in the same direction. At state-controlled Vietcombank, one of the country's "Big 4" banks, Friday’s buying and selling rates were VND24,085 and VND24,425 per U.S. dollar, respectively, up from VND23,045 and VND24,385 on Thursday.

BIDV, also a “Big 4” bank, set its buying and selling rates at VND24,115 and VND24,415 on Friday, up from VND24,080 and VND24,380 on Thursday.

Corresponding figures at Techcombank, a leading private lender, were VND24,094 and VND24,432 on Friday, up from VND23,070 and VND24,410 a day ago, respectively.

However, the exchange rates at VietinBank, another “Big 4” bank, did not move in tandem with the above-mentioned banks. It increased the buying rate to VND24,088 on Friday from Thursday’s VND24,020. But the selling rate decreased to VND24,428 from VND24,440 in the same period.

At the government’s Thursday conference on boosting activities of state-owned enterprises (SOEs), SBV Governor Nguyen Thi Hong said the central bank strives to ensure a stable but not fixed rate in order to ensure macroeconomic goals. She clarified the depreciation of the domestic currency would not be beneficial for many domestic firms, which had to import goods and materials, and neither for foreign investors when they have to transfer the money abroad.