State bank signals readiness to intervene in forex market

However, the State Bank of Vietnam (SBV) said market liquidity basically remains smooth and the legal demand for foreign currencies are still fully and promptly met. SBV said the complicated developments of the Covid-19 epidemic led to fluctuations of world currencies, and the currencies of many major trading partners of Vietnam depreciated. The central banks of many countries made policy moves to support market liquidity, but there would be some latency time before they can have an effective impact on the market. There have been no big changes to Vietnam's balance of supply and demand of foreign currencies.

The country logged a trade surplus of 1.82 billion USD in February and is expected to have an 880 million USD trade surplus in March. In the first months of 2020, SBV supplemented a large amount of foreign currency to its reserves. It is ready to intervene in the forex market when necessary with a lower exchange rate than the current listed rate on a large scale, using spot-futures parity.