Business · Vietnam Bureau
Vietnam's reference exchange rate weakens 5 VND against US dollar
The State Bank of Vietnam lowered its reference exchange rate on October 16, marking another shift in the closely-watched currency benchmark. Commercial banks face a widened trading band as the central bank continues to manage the dong's valuation.
LSN Vietnam ·
Vietnam's reference exchange rate for the US dollar declined by 5 VND on October 16, according to rates set by the State Bank of Vietnam. The adjustment reflects ongoing fluctuations in the currency markets as the central bank maintains its managed float system.
Under the current trading band of plus or minus 5 percent, commercial banks are authorized to conduct transactions within defined parameters. The ceiling rate applicable for banks during trading sessions stands at 26,919 VND per US dollar, while the floor rate is set at 24,355 VND per dollar.
The reference rate movement follows a 4 VND decline recorded on October 15. Prior to that, the rate had strengthened, gaining 13 VND on October 14 and posting gains on October 13, illustrating the volatility characteristic of currency markets in the region.
The State Bank of Vietnam's reference rate serves as a key benchmark for foreign exchange transactions conducted by licensed banks and influences broader currency market dynamics throughout the country's financial system.