Vietnam's central bank cuts US dollar rate to VND23,622

The State Bank of Vietnam reduced the central exchange rate to VND23,622 per U.S. dollar on Friday, from VND23,635 on Thursday and VND23,639 on Wednesday, after the U.S. Fed raised its benchmark overnight interest rate by a quarter of a percentage point to 5-5.25%.

Per the central bank’s (SBV) trading band of +-5%, the move means commercial banks can set their exchange rates between VND22,441 and VND24,803.

On the same day, the SBV adjusted the reference exchange rate at its operation center. The selling rate fell from VND24,766 on Thursday to VND24,753 on Friday, while the buying price remained the same, at VND23,450.

Exchange rates at major banks in Vietnam remained stable on Friday. At state-controlled Vietcombank, one of the country's "Big 4" banks, Friday’s buying and selling rates were VND23,280 and VND23,620 per U.S. dollar, respectively, and unchanged from Thursday.

BIDV, also a “Big 4” bank, set buying and selling rates of VND23,300 and VND23,600, again unchanged from Thursday.

VietinBank, another “Big 4”, set its buying rate at VND23,277, up from VND23,245 on Thursday, while its selling rate was VND23,617, down from VND23,665.

The figures at Techcombank, a leading private lender, were VND23,288 and VND23,620, down from VND23,289 and VND23,621 the day before.

The SBV lowered its policy interest rates by 0.5 percentage points from April 3, the second cut within one month, to support growth amid global economic headwinds. The fresh move put the refinance rate at 5.5%, while the discount rate remained unchanged at 3.5%, as did the overnight interbank rate at 6%.

The ceiling interest rates on dong deposits was cut by 0.5 percentage points to between 0.5% and 6.0%,