Deputy Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) had a meeting with reporters about the orientations for exchange rate management of the SBV in Hanoi on the afternoon of March 25, 2015.
Deputy Governor Nguyen Thi Hong said that over the past time, the SBV has closely monitored developments of USD versus other currencies and fluctuations in the domestic forex market. She asserted that recently, the VND/USD exchange rate has been on an upward trend due to the psychological factor resulting from the remarkable appreciation of USD in the international market. The foreign currency supply and demand are not changed basically. In fact, the common VND/USD exchange rate is still lower than the set ceiling exchange rate (on the afternoon of March 25, 2015, the exchange rate was 21,495/21,500 VND/USD), the forex market have been operating normally and smoothly, the legitimate demand of foreign currencies of institutions and individuals has been met promptly.
Based on close monitoring of macro – economic developments in the international and domestic markets, the announcement on policy orientations of the Federal Reserve System (Fed) on March 18, and the assessment and analysis of macro-economy and monetary policy, the State Bank of Vietnam (SBV) noticed that it would be better to remain the VND/USD exchange rate stable than to adjust the exchange rate at this time.
In the coming time, the SBV continues to stabilize the exchange rate within the set band. In order to stabilize the exchange rate and the forex market, the SBV closely monitors macro-economic developments and money market, proactively and flexibly manages monetary policy instruments as well as conducts comprehensive measures.
LH