Vietnam central bank reduces exchange rate to three-month low

The State Bank of Vietnam (SBV) decreased the central exchange rate to VND23,954 per U.S. dollar Monday and further to VND23,915 Tuesday.

The Monday rate was equivalent to the three-month low of VND23,954 recorded on August 24 and VND23,952 on August 25. The Tuesday rate was 0.71% lower than that on October 31, according to SBV data.

The depreciation of the greenback has happened as the U.S. Federal Reserve maintained its funds rate at 5.25%-5.5% early November.

Per the SBV's trading band of +-5%, the reference exchange rate of VND23,400-25,243 means commercial banks can set their exchange rates between VND22,756 and VND25,151.

The exchange rate has moved in the same direction at commercial banks. At mid-Tuesday, state-controlled Vietcombank, one of the country's "Big 4" banks, set its buying and selling rates at VND23,930 and VND24,270 per U.S. dollar, respectively, down from VND24,005 and VND24,345 on Monday.

At BIDV, another “Big 4” bank, the buying and selling rates were VND23,950 and VND24,250 Tuesday, respectively, down from VND24,020 and VND24,320 the previous day.

At yet another “Big 4” member, VietinBank, the buying rate fell to VND23,939 Tuesday from Monday’s VND23,965 while the selling rate decreased to VND24,279 from VND24,385.

Corresponding figures at Techcombank, a leading private lender, were VND24,268 and VND23,958 Tuesday, down from VND24,333 and VND24,023.