Greenbank rates again soar in local market

May 21, 2015 | 08:56

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The greenback rate in LienVietPostBank was listed on May 20 from a high of VND21,860 to only VND30, lower than the ceiling price set by the State Bank of Viet Nam (SBV).

Prices of US dollar rise again in the local market on May 20

At the same time, all local commercial banks rated US dollars at VND10 to VND20. Vietcombank and BIDV listed their rates at VND21,770 and VND21,830, respectively, while Techcombank rated dollars at VND 21,770 (buying) and VND21,845 (selling).

Further, ACB bought dollars at VND21,760 and Eximbank bought at VND21,790, while both banks sold dollars at VND21,840.

Also, DongABank's was buying dollars at VND 21,760 and selling at VND21,850.

Rates also rose at similar levels in street markets. Most money exchangers on Ha Trung Street, one of the most popular spots for money exchange in Ha Noi, bought dollars at VND21,820 and sold them at VND21,850.

As of May 7, the SBV increased the inter-bank exchange rate from VND21,458 to VND 21,673 per US dollar. With an effective exchange rate at a one per cent margin, the ceiling rate was VND21,890 per dollar.

Then, on May 15, the central bank listed its buying and selling reference rates at VND21,600 and VND21,820, respectively, as a message that it will be ready to interfere in case of tensions in the market.

Meanwhile, the central bank announced that it would lift the USD/VND rate to the maximum of 2 per cent in 2015. Thus, in the first five months of this year, the central bank raised the USD/VND to the highest rate it has so far committed to.

On the same day, reuters.com reported that the greenback was also supported by strong US housing data that stoked hopes that the Fed could soon raise rates. The robust reading, after a string of mixed data, prompted investors to focus even more on the minutes of the U.S. central bank's April meeting, to be released later in the day, to gauge its outlook on interest rates.

VNS

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