Dollar on the rise

The exchange rate at banks and on the unofficial market increased to around VND21,000 to the U.S. dollar on Tuesday after rising steadily over the past week.

Bank for Foreign Trade of Vietnam, or Vietcombank, quoted the greenback at VND20,920 and VND20,990 for buying and selling respectively, up by VND110 compared to a week earlier and VND30 against the previous day.

According to a banker, large commercial banks have seen a huge demand for foreign currencies to serve oil and gas imports while some businesses have to buy dollars to pay their debts.

Meanwhile, banks also have high dollar demands as their short or long foreign currency status will not go beyond 20% of their total capital volume as regulated by the central bank.

Le Dat Chi, dean of the finance department at the HCMC University of Economics, said there would be a shift to dollar deposits given rising prices since late last Monday while dong deposit rates have kept falling.

On the unofficial market, the greenback was bought and sold at VND21,950 and VND21,100 respectively, up by around VND150 from the previous week.

The central bank from early this year still maintains the inter-bank exchange rate at VND20,828.

 Source: The Saigon Times

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