Press Release on announcement of central rate of VND versus USD
The State Bank of Vietnam (SBV) issued Decision No.2730/QD – NHNN on December 31 to announce the central rate of VND versus USD and the cross rate of VND versus other foreign currencies.
The central rate of VND versus USD daily announced by the SBV is the basis for licensed credit institutions, foreign bank branches to determine the buying and selling USD/VND exchange rate. The central rate of VND versus USD is calculated on the basis of reference to the inter-bank average VND/USD exchange rate, the exchange rate in the international market of foreign currencies of several countries having trade, lending - borrowing relations or large investment with Vietnam, the macro - economic and national monetary balances in line with the SBV monetary policy targets. The new method of managing exchange rate allows exchange rate system to be determined more flexibly in line with the domestic supply and demand of foreign currencies, the fluctuations of exchange rate in the international market, while ensuring the role of the SBV in managing the monetary policies.
The announcement of the central rate of VND versus USD is the forward step of consistent measures conducted by the SBV in order to appreciate VND, stabilize the exchange rate and forex market, thereby contributing to stabilizing macro-economy, supporting production and business of enterprises.
The SBV will perform consistent measures and monetary policy tools, intervene to sell foreign currencies to stabilize the forex market and exchange rate within the set band.
Translated by LH