Thanh Thuong and Tu Hoang
When necessary, SBV will apply measures to stabilize forex rates, including selling out foreign currencies to support market liquidity. However, Hung said, all conditions are now favorable for a stable forex rate.
In the first six months of this year, the nation’s trade deficit was only US$1.4 billion while foreign direct investment capital reached US$5.7 billion. Remittance and indirect investment capital did not decline while the balance of payments is expected to run a surplus of around US$5 billion this year.
Therefore, there is no signs for dollar supply tension while banks see no shortage in foreign currency status, Hung said.
Explaining the rising dollar price at banks and the unofficial market, Hung said psychological factors and banks’ increasing dollar purchase are the culprit. Besides, some speculators have manipulated the dollar price to earn profits.
Hung said the central bank will look into foreign currency transactions of credit institutions in the coming time. SBV has also asked it branches to cooperate with law enforcement officers to detect and take sanctions against violators of foreign currency trading rules.
The deputy governor reiterated that the exchange rate will increase by just around 2-3% this year.
Early this week, the exchange rate shot up after the central bank raised inter-bank exchange rate by one percentage point to VND21,046 to the dollar on June 28. Banks quoted both dollar buying and selling prices at the ceiling rate of VND21,246 a dollar.
On the unofficial market, the exchange rate hit a two-year high of VND21,900 per dollar.
Seconding the central bank’s prediction on a stable forex rate, an economist said forex sources are now ample.
Vo Tri Thanh, vice president of the Central Institute for Economic Management (CIEM), told the Daily that the central bank has enough sources to maintain the exchange rate policy as announced.
He said the central bank should make information related to foreign reserves and the international balance of payments transparent so as to calm the public.
Vietnam has strong foreign reserves expected at US$40 billion by some international organizations.
In addition, although the nation still runs trade deficit, the international balance of payments sees strong surplus, standing at over US$10 billion last year. While inflation is expected to be curbed at 6-7% this year, the central bank will have enough sources to keep the exchange rate fluctuation at 2-3% as announced.
The exchange rate may rise at some times but the supply and demand will not see big tension, Thanh said.
Đăng ký: VietNam News
