Business · Vietnam Bureau
Vietnam's USD reference rate climbs on November 11
Vietnam's State Bank raised the daily reference exchange rate for the US dollar on November 11, with commercial banks operating within a +/- 5 percent trading band. The adjustment follows a week of downward pressure on the local currency.
LSN Vietnam ·
The State Bank of Vietnam set the reference exchange rate higher on November 11, continuing to manage the dong's value within established parameters. Under the current +/- 5 percent trading corridor, commercial banks are permitted to transact at a ceiling rate of 26,892 VND per US dollar and a floor rate of 24,330 VND per dollar during regular trading hours.
The rate movement comes after several days of depreciation pressure on the Vietnamese dong. The reference rate had declined by 10 VND on November 10 and fell 5 VND at the start of the week, reflecting broader market conditions affecting Southeast Asian currencies.
The State Bank's managed floating exchange rate system aims to maintain stability in Vietnam's foreign exchange market while allowing for gradual adjustment based on supply and demand dynamics. The daily reference rate serves as a benchmark for commercial banks' foreign exchange operations and helps guide market expectations.
Market participants closely monitor the State Bank's daily rate adjustments as indicators of monetary policy direction and broader economic conditions. The current widened trading band provides banks with flexibility to respond to market movements while maintaining orderly price discovery in the foreign exchange market.