Business · Vietnam Bureau
Vietnam's dong weakens further as reference rate declines
The State Bank of Vietnam's reference exchange rate continued its downward trajectory on October 23, marking another day of weakness for the Vietnamese dong against the US dollar. Commercial banks operated within a trading band that saw the ceiling rate reach 26,908 VND/USD.
LSN Vietnam ·
Vietnam's reference exchange rate extended losses on October 23, continuing a recent pattern of depreciation for the dong. The State Bank of Vietnam maintained its standard trading corridor of ±5%, establishing parameters that guided commercial bank transactions throughout the day.
Under the established trading band, the ceiling rate applicable to commercial banks stood at 26,908 VND/USD, while the floor rate was set at 24,346 VND/USD. This configuration provided a 2,562 VND spread within which authorized financial institutions could conduct foreign exchange operations.
The latest decline follows a mixed period for the Vietnamese currency. The reference rate had edged down on October 22 and fallen 5 VND on October 16, though it registered a gain of 6 VND on October 20, demonstrating the volatility characteristic of emerging market currencies.
The persistent weakening of the dong reflects broader regional currency pressures and shifts in foreign exchange flows. The State Bank's management of the reference rate remains a key tool for maintaining exchange rate stability and managing capital flows in Southeast Asia's second-largest economy by population.
Photo: The State Bank of Vietnam's Ho Chi Minh City branch building, August 2019. Simon_sees via Wikimedia Commons (CC BY 2.0).