The dong has advanced 6 per cent in the past six months, joining a rally in Asian peers, as the US dollar has weakened. Majumdar held that the recovery in tourism and steady foreign direct investment inflows will help boost the nation’s reserves even as exports weaken. Viet Nam’s reserves stood at $88.3 billion in January, according to the International Monetary Fund. Nishad Majumdar, an analyst in Singapore, held that the recent appreciation of the dong, which reflects the improved external position, will give the central bank space to rebuild the forex buffers that were spent down during the US dollar’s rally last year. Meanwhile, Moody’s Investor Service has forecast that Viet Nam’s forex reserves excluding gold will rebound to $95 billion by the end of the year as the State Bank of Vietnam rebuilds its stockpile. In the first four months of this year, the SBV bought nearly $4.9 billion from credit institutions, up about $1 billion from the amount recorded at the end of the first quarter of 2023.Įxperts from VNDirect forecast that Viet Nam's foreign exchange reserves will recover to reach $102 billion by the end of this year. Tuan said that the increase in foreign currency supply enabled the SBV to buy more foreign currencies for the foreign exchange reserves. The USD/VND exchange rate tends to decrease and stabilise again, he said, adding that the recovery of the Vietnamese currency against the US dollar since December 2022 was similar to that of many other currencies in the region such as the Japanese yen, Chinese yuan, the won of the Republic Korea and the Thai baht. Mirae Asset noted that the State Bank of Vietnam had bought a large volume of foreign currency in the first four months, raising the foreign exchange reserves to around US$90 billion.ĭao Xuan Tuan, head of the Foreign Exchange Management Department under the State Bank of Vietnam (SBV), said that since the end of 2022, the foreign exchange market has developed positively and gradually become stable. The United Overseas Bank (UOB) rated the Vietnamese dong as one of the most stable currencies in Asia, despite significant changes in the Fed's interest rate hike expectations as well as concerns about a global recession and instability of the US banking system. The rate has remained stable throughout the January-April period. Market analysis reports released by Mirae Asset Securities Vietnam showed that in April, the USD/VND exchange rate dropped 0.2 per cent and the average exchange rate hovered around VND23,500 per US dollar during the month. Lastly, the 500,000 banknote is dedicated to Ho Chi Minh as his birthplace is displayed on the reverse.The USD/VND rate has remained stable throughout the January-April period. The 200,000 dong displays rocks from the Ha Long Bay. The 100,000 Vietnamese dong has the Temple of Literature prominently featured. The 50,000 Vietnam dong illustrates the Phu Van Lau pavilion and is pink/yellow in color. The 20,000 dong features the Japanese pagoda bridge in Hoi An. The 10,000 dong features oil rigs from the Bach Ho Oil Field. Each of these currencies features Ho Chi Minh on the obverse and a different reverse design based on the culture of Vietnam. The latest version of Vietnamese currency is all polymer and was presented in 2003 by the Vietnamese Central Bank. The Vietnamese dong (VND) was established by the State Bank of Vietnam, located in Hanoi, on May 3rd of 1978 and is represented by the abbreviation VND.
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