Dollar Value Unexpectedly Bounces Back in Vietnam

The U.S. dollars have unexpectedly appreciated against Vietnam dong in recent days after a long time of sinking, state media reported March 28.

 

Commercial banks, which once refused to buy dollars from exporters, now are purchasing dollars at VND15,930/US$1 while the VND16,230/US$1 threshold has been regained on the black market for the first time in a year.

 

The increase of VND100/US$1 in the inter-bank market and VND300/US$1 in the black market both are things which have not been seen for a year, according to a Hanoi-based bank director.

 

Investors would get the profit of 5 per cent at the moment, if they bought dollars when the price was VND15,300/US$1, said the director, highlighting that 5 per cent profit is five times higher than the deposit interest rate, quite attractive if compared to securities investments.

 

Analysts have attributed the recovery of U.S. dollars to widened forex trading band, soaring demand of commercial banks for foreign currency capital, FED's interest rate cut, and continuant purchase of export-sourced dollars by the State Bank of Vietnam.

 

The prices of US dollar are expected to continue increasing in the coming time. (Vietnam Economic Times)