Business · Vietnam Bureau
Vietnam's reference exchange rate climbs on October 29
Vietnam's dong strengthened against the US dollar on October 29, marking the latest shift in the benchmark exchange rate. The State Bank of Vietnam maintained its trading band at ±5%, establishing new ceiling and floor rates for commercial banks.
LSN Vietnam ·
The reference exchange rate for the Vietnamese dong rose 6 VND per US dollar on October 27, followed by a marginal decline of 2 VND on October 28, before gaining ground again on October 29. These movements reflect ongoing adjustments in the benchmark rate that guides commercial bank transactions.
Under the current trading band of ±5%, the ceiling rate applicable to commercial banks stood at 26,926 VND/USD, while the floor rate was set at 24,352 VND/USD. This band system allows banks to operate within defined parameters while responding to market conditions.
The fluctuations over the three-day period demonstrate the dynamic nature of Vietnam's foreign exchange market as the central bank continues to manage the dong's stability. The reference rate serves as a key indicator for businesses and financial institutions conducting cross-border transactions and foreign exchange operations.
Photo: The State Bank of Vietnam's Ho Chi Minh City branch building, August 2019. Simon_sees via Wikimedia Commons (CC BY 2.0).