Business · Vietnam Bureau
Vietnam's Reference Exchange Rate Rises 6 VND Against US Dollar
Vietnam's State Bank raised the daily reference exchange rate by 6 Vietnamese dong against the US dollar on October 27, continuing recent volatility in the currency market. The adjustment reflects ongoing fluctuations in the forex trading band established by monetary authorities.
LSN Vietnam ·
The State Bank of Vietnam set the reference exchange rate at a higher level on October 27, marking an increase of 6 VND per US dollar from the previous trading session. This adjustment comes after the central bank's continued management of Vietnam's currency within a defined trading corridor.
Operating within a permitted trading band of plus or minus 5 percent, commercial banks faced a ceiling rate of 26,915 VND per USD and a floor rate of 24,351 VND per USD on October 27. These parameters establish the boundaries within which authorized banks may conduct foreign exchange transactions with customers.
The reference rate movement represents a reversal from earlier in the week, when the rate had declined on consecutive trading days. The State Bank's daily adjustments of the reference rate serve as a benchmark for Vietnam's foreign exchange market and influence commercial banks' pricing of currency transactions.
The recent pattern of rate movements—including declines recorded on October 21, 22, and 23 followed by the gain on October 27—underscores the dynamic nature of currency markets as they respond to global economic conditions and capital flows affecting Vietnam's economy.
Photo: The State Bank of Vietnam's Ho Chi Minh City branch building, August 2019. Simon_sees via Wikimedia Commons (CC BY 2.0).