Business · Vietnam Bureau
Vietnam dong weakens as reference rate declines early in week
Vietnam's reference exchange rate dropped 4 VND against the US dollar at the beginning of the week, marking the latest movement in the closely-watched currency benchmark. The decline reflects ongoing volatility in the dong's valuation within the State Bank's regulated trading band.
LSN Vietnam ·
The reference exchange rate for the Vietnamese dong slipped 4 VND per US dollar during early week trading, continuing a pattern of fluctuation observed over recent trading sessions. The State Bank of Vietnam maintains the rate within its established trading band of +/- 5%, a mechanism designed to manage currency stability while allowing market flexibility.
Under the current parameters, the ceiling rate—the maximum level at which commercial banks may trade the dollar during the day—stands at 26,915 VND/USD. The floor rate, representing the minimum trading level, is set at 24,351 VND/USD. These boundaries establish a permitted trading corridor that guides daily currency operations across the banking sector.
The latest depreciation follows a more significant 5 VND decline recorded on October 16, though this was partially offset by a 13 VND appreciation on October 14, illustrating the volatility characterizing the currency in recent trading days. Market participants continue to monitor the reference rate closely as it influences pricing across multiple economic sectors dependent on foreign exchange transactions.
The State Bank's management of the exchange rate through its daily reference fixing remains a key instrument for balancing Vietnam's external trade competitiveness with domestic price stability considerations.