According to the State Bank of Vietnam, the exchange rate will be adjusted up and down daily according to market signals rather than at a fixed rate in one certain period as before.
Nguyen Thi Hong, Deputy Governor, State Bank of Vietnam said: The daily exchange rate will be determined based on 3 things: movements of the USD and other currencies, reference on the interbank market, and on the basis of monetary policies. The flexible adjustments will boost international trade and investment, especially after many FTAs have been signed.
Many experts said that a better exchange rate operation will help the Vietnamese dong no longer depend on the unstable world economy.This will also limit the speculation and hoarding of foreign currencies.
Along with better operation, monetary regulators will provide different products on the foreign exchange market to meet diverse needs.
Do Ngoc Quynh, Director, BIDV’s Treasury & Currency Trading Dept. said: Following the new exchange rate operation, derivative products such as insurance rates and buy and sell services will better serve enterprises with foreign currency needs.
Nguyen Van Han, Manager, Financial Accounting Division, Cuu Long Automobile Factory said: Our company will have to pay attention and be more proactive to changes in exchange rates. We may not have the expertise in this, but commercial banks have provided guidance, so that we can adapt to this new mechanism.
Not only the monetary regulators, but also enterprises will have to take part in the new mechanism to be active in their business plans. 2016 will witness change and active participation in the domestic foreign currency market.
