The decision was said to be in line with market expectations. The gold and foreign exchange market in Vietnam offered a mild reaction to the decision.
The domestic gold market continued to see a decline in SJC gold prices on Thursday (Dec 17th). The trend began at the start of this week. However, the decrease has not been significant.
"Most investors decided to buy now because they have sold too much. Some of they want to stockpile gild. But transactions have been small and the number of transactions modest", Tran Nhu My, Sales Manager, DOJI Gold and Gems Group, said.
Unlike the world markets, the Vietnamese stock market did not experience great changes. High-valued stocks registered a slight increase. Liquidity remained low.
In Hanoi, the unofficial USD/VND exchange rate decreased during Thursday but still stayed high, at 22,730 VND a dollar for buying and 22,750 VND a dollar for selling. The official rate among commercial banks remained largely unchanged.
"At the end of this year and the beginning of next year, the exchange rate between VND and USD will face great pressure. However, the State Bank of Vietnam and other related agencies have tried to maintain the currently rate in the period in the run-up and after the Lunar New Year", the economist Can Van Luc said.
Experts say that with appropriate methods, the State Bank of Vietnam can stabilise the exchange rate by balancing foreign exchange demand and reserves.
