Vietnam is supported to stabilize the forex market from sufficient resources by the State Bank

The State Bank of Vietnam will continue to take monetary measures and tools synchronously to stabilise the foreign exchange market amid the complex development of COVID-19 pandemic.

March 25, 2020 | 08:05

	Service sector as bank rescue in COVID-19
	State Bank of Vietnam reducing the prime interest rate
	State Bank of Vietnam urge for cash sterilization to curb COVID-19 spreading

state bank of vietnam will continue to stabilize the forex market

The State Bank of Vietnam has said it is ready to intervene in the market when the intervention rate is lower than the current listed exchange rate on a large scale by spot or forward transactions to stabilise the foreign exchange market.

The statement was made by Pham Thanh Ha, Director General of the SBV’s Monetary Policy Department.

According to Ha, in January, in the context of favorable international markets and a stable market rate, the SBV continued to increase its foreign exchange reserves.

Since February, although the foreign exchange market has been under certain pressure due to the complicated developments of the COVID-19 pandemic, exchange rate fluctuations had been relatively calm. On some days, the exchange rate fell close to the central bank's buying rate. Credit institutions have continued to sell foreign currencies to the SBV, he stated.

However, from the beginning of last week, the exchange rate has risen as fluctuations on the global financial market increase. However, market liquidity was basically stable and legitimate foreign currency demands have been met promptly, he added.

Ha said that the reasons for the recent increase in foreign exchange rates are the complicated developments of COVID-19 and the depreciation of currencies in many of Vietnam’s major trade markets.

However, the balance of foreign currency supply and demand has remained stable. Vietnam enjoyed trade surpluses of 1.82 billion USD in the first two months of 2020 and 880 million USD in March. The foreign exchange position remains positive and legitimate foreign currency needs of customers are being fully met by credit institutions.

The central bank will continue to keep a close watch on the developments of domestic and foreign markets, making possible scenarios, managing the reference exchange rate flexibly, and using monetary measures and tools synchronously to stabilise the foreign exchange market, Ha stated.

COVID-19 infection in Vietnam: Raising total to 134, including 31 foreigners

Coronavirus update: The Ministry of Health has confirmed 11 more COVID-19 infection cases, including three foreign nationals, raising the total number of patients to 134.

HCM City’s entertainment areas, restaurants closed to curb COVID-19 outbreak

All entertainment areas and restaurants with more than 30 seats in Ho Chi Minh City, must close until Mar 31 to help curb the spread ...

The Asian Development Bank (ADB) President offers support for Vietnam's Covid-19 response

The Asian Development Bank (ADB) on 24 March expresses its willingness in an official letter to offer Viet Nam with timely and flexible support for ...

vietnamnet