Vietnam’s foreign exchange reserves stand at $80 bln: broker

By Minh Hue
Sun, December 29, 2024 | 4:30 pm GMT+7

The State Bank of Vietnam (SBV) sold about $9.4 billion in 2024 to stabilize the exchange rate, resulting in the current reserves of $80 billion, according to Viet Dragon Securities Corporation (VDSC).

Vietnam's foreign exchange reserves stand at $80 billion. Photo courteys of Vietnam Economic Times.

Vietnam's foreign exchange reserves stand at $80 billion. Photo courteys of Vietnam Economic Times.

The SBV's foreign exchange sales were divided into two phases. The first phase, from April to July 2024, saw the sale of around $6.5 billion and the second phase, from September to December, $2.8 billion.

The current reserves are equivalent to 2.5 months of imports, lower than the 3.3 months recorded at the end of 2023.

In its macroeconomic report reviewing the currency market trends in 2024, VDSC noted that the USD/VND exchange rate experienced significant fluctuations throughout the year, with heightened pressure on the depreciation of the Vietnamese dong, particularly in Q2 and Q4.

It indicated that the movement of the USD/VND exchange rate in 2024 would depend on the trend of the USD, with a correlation coefficient between the U.S. Dollar Index (DXY) and the USD/VND exchange rate at 0.67, slightly higher than the 0.63 recorded in 2023.

Compared to the beginning of the year, the SBV raised the central exchange rate by 1.9% to 24,320 VND/USD. The official exchange rate on the formal market rose by approximately 4.8% to 25,430 VND/USD, while that on the informal market increased by 4.3% to 25,840 VND/USD.

"The exchange rate fluctuations this year remain within the permissible range set by the SBV," the broker stated.

In addition to foreign exchange sales, the central bank also conducted open market interventions through interest rate management. Its net withdrawals increased during periods of high exchange rate fluctuations, such as in May-June and October-December.

For the whole of 2024, the SBV net withdrew about VND28 trillion ($1.1 billion), compared to a net injection of around VND66 trillion in 2023.

The SBV maintained unchanged policy rates, with the rediscount and refinancing rates set at 3.0% and 4.5% per year, respectively. Interest rates in the open market for repos and bill issuance by the central bank did not exceed the refinancing rate.

Meanwhile, the average overnight lending rate in the interbank market was 3.4% per year, about 1.2 percentage points higher than in 2023. When the overnight lending rate for VND drops significantly below the rediscount rate, the SBV often issues bills to push rates back up. This is also a measure to control the USD/VND interest rate differential and reduce pressure on the exchange rate.

Comments (0)
  • Read More
VinFast partners with 12 major banks to accelerate green transport in Hanoi

VinFast partners with 12 major banks to accelerate green transport in Hanoi

Vietnamese electric vehicle maker VinFast, a subsidiary of Vingroup, on Thursday signed a cooperation agreement with 12 financial institutions to promote the transition from gasoline-powered vehicles to electric ones in Hanoi.

Companies - Thu, July 24, 2025 | 10:43 pm GMT+7

Thailand submits final proposal in tariff talks with US

Thailand submits final proposal in tariff talks with US

Thailand has entered the final stage of negotiations with the U.S. on tariffs, hoping to achieve a tax rate that is competitive with regional partners before the August 1 deadline.

Southeast Asia - Thu, July 24, 2025 | 10:39 pm GMT+7

Vietnam’s expressway giant VEC lands huge state capital boost

Vietnam’s expressway giant VEC lands huge state capital boost

State-owned expressway developer Vietnam Expressway Corporation (VEC) has seen its charter capital rise by over VND37.5 trillion to VND38.62 trillion ($1.48 billion) this year, as per a decision signed by Minister of Finance Nguyen Van Thang.

Companies - Thu, July 24, 2025 | 10:26 pm GMT+7

Vietnam’s food giant Kido to acquire 41% stake in operator of HCMC mall

Vietnam’s food giant Kido to acquire 41% stake in operator of HCMC mall

Kido Group (HoSE: KDC), a leading food company in Vietnam, has announced its plan to acquire a 41% stake in Bac Binh Construction Investment JSC, the operator of Van Hanh Mall – one of the largest shopping centers in Ho Chi Minh City.

Real Estate - Thu, July 24, 2025 | 10:14 pm GMT+7

Vietnam remains Nike’s biggest manufacturing hub for 3rd year in row

Vietnam remains Nike’s biggest manufacturing hub for 3rd year in row

Vietnam remains Nike’s largest manufacturing base globally for the third fiscal year running, according to the U.S. sportswear giant’s annual report for fiscal year 2025 ending in May.

Companies - Thu, July 24, 2025 | 4:24 pm GMT+7

Gia Binh to be northern Vietnam’s largest airport as scale largely revised up

Gia Binh to be northern Vietnam’s largest airport as scale largely revised up

Gia Binh International Airport in Bac Ninh province, an industrial hub neighboring Hanoi, is set to surpass Noi Bai as northern Vietnam’s largest airport, after the construction ministry approved adjustments to its projected capacity and land area.

Infrastructure - Thu, July 24, 2025 | 3:25 pm GMT+7

Ho Chi Minh City powers up as industrial giant post-merger

Ho Chi Minh City powers up as industrial giant post-merger

Vietnam’s southern economic engine Ho Chi Minh City is shifting into high gear, fueled by a landmark merger with neighboring industrial hubs Binh Duong and Ba Ria-Vung Tau.

Companies - Thu, July 24, 2025 | 2:04 pm GMT+7

Malaysia announces cash aid, fuel price cut amid inflation

Malaysia announces cash aid, fuel price cut amid inflation

Malaysian Prime Minister Anwar Ibrahim on Wednesday announced new measures to address growing public concern about the rising cost of living, including a cash handout for all adult citizens and a promise to lower fuel prices.

Southeast Asia - Thu, July 24, 2025 | 1:44 pm GMT+7

Ca Na LNG-fueled power project in central Vietnam draws only one bid

Ca Na LNG-fueled power project in central Vietnam draws only one bid

A consortium comprising multi-sector corporation Trungnam Group and Sideros River has been the sole bidder to date for the 1,500 MW Ca Na LNG-to-power project in Vietnam’s south-central province of Khanh Hoa, according to local authorities.

Investing - Thu, July 24, 2025 | 1:21 pm GMT+7

Techcombank, Vingroup okayed to form life insurance firm

Techcombank, Vingroup okayed to form life insurance firm

Techcombank, a major private lender in Vietnam, said it has secured a license from the Ministry of Finance to set up a life insurance firm, with itself and leading conglomerate Vingroup as major shareholders.

Finance - Thu, July 24, 2025 | 11:04 am GMT+7

Vietnam's logistics major Gemadept completes 70% of 2025 profit plan after 6 months

Vietnam's logistics major Gemadept completes 70% of 2025 profit plan after 6 months

Gemadept Corporation, a leading port and logistics company in Vietnam, had completed 70% of the year's profit target set by its AGM after six months.

Companies - Thu, July 24, 2025 | 8:53 am GMT+7

Danish Ambassador, Carlsberg Vietnam's meeting with Hue city's administration reflects long-term partnership commitments

Danish Ambassador, Carlsberg Vietnam's meeting with Hue city's administration reflects long-term partnership commitments

The recent visits by Danish Ambassador Nicolai Prytz and Carlsberg Vietnam leadership to the Hue city People's Committee reaffirm their commitment to long-term partnership and sustainable development.

Companies - Thu, July 24, 2025 | 8:00 am GMT+7

Postal and delivery services: high revenue, slim profit

Postal and delivery services: high revenue, slim profit

The presence of both international and domestic players is energizing the postal and delivery services market, yet fierce price competition continues to narrow profit margins, testing corporate endurance.

Companies - Thu, July 24, 2025 | 7:42 am GMT+7

Vietnam’s digital asset market attracts major players

Vietnam’s digital asset market attracts major players

Domestic securities firms, investment funds, and prominent technology companies both in and outside Vietnam are actively positioning themselves to tap into the country’s growing digital asset and cryptocurrency market.

Finance - Wed, July 23, 2025 | 11:55 pm GMT+7

Vietnam's Deputy PM pledges support for German group's vocational projects

Vietnam's Deputy PM pledges support for German group's vocational projects

Deputy Prime Minister Nguyen Chi Dung welcomed German-based Avestos Group's interest in promoting investment and business cooperation in Vietnam, emphasizing the continued positive development of the Vietnam-Germany Strategic Partnership across all sectors.

Companies - Wed, July 23, 2025 | 11:48 pm GMT+7

SP Group partners with Hoa Sen Group for Vietnam’s first industrial cooling-as-a-service offering

SP Group partners with Hoa Sen Group for Vietnam’s first industrial cooling-as-a-service offering

SP Group (SP) recently announced a partnership with Hoa Sen Group, one of Southeast Asia’s leading steel manufacturers, to introduce Vietnam’s first Industrial Cooling-as-a-Service (CaaS) offering.

Companies - Wed, July 23, 2025 | 11:42 pm GMT+7