SBV’s daily exchange rate shows positive results

Although overall, the exchange rate has been kept quite stable, the rates posted by the central bank and commercial banks sometimes shift in opposite directions.

The charts reflect the changes of the daily exchange rate announced by the central bank and commercial banks, since the policy was applied. In general, the charts follow the same trend, but at certain points, the rates of these banks fluctuated differently, or even in opposite directions. Representatives of some commercial banks said that this situation is normal.

"The reason is that the central bank’s daily rate is announced at the beginning of the day. Meanwhile, the commercial banks’ rate fluctuates during the day, according to many factors, such as foreign currency supply and demand, remittances, or the liquidity of credit institutions", Pham Thanh Ha, Deputy General Director of Vietcombank, said.

The central bank’s policy for the daily exchange rate received positive feedback from experts. "This policy allows us to be more active with changes in the foreign currency market. For example, after the policy is applied, the daily supply of foreign currency has often met the demand, and our market is less affected by the fluctuations of China’s market", Truong Van Phuoc, Vice Chairman of National Financial Supervisory Commission, said.

It is predicted that the global finance market will continue to fluctuate. The US’s FED will soon increase the interest rate and the Chinese yuan is still on a devaluation trend. Considering this situation, the central bank’s daily exchange rate policy is considered a suitable move for Vietnam to actively minimise the negative impacts of these factors.