Global and local gold prices increased on March 18 when the forex rate of US notes went up at most local banks.
Spot gold on the global gold exchange Kitco.com rose 0.1 per cent to reach $1,529.69 per ounce ($1843.2 per tael), when many analysts thought the US central bank’s steps to support liquidity helped boost the prices of the yellow metal.
In the local market this morning, Doji asked VND46.80 million ($2,016) for each tael of gold, while Sai Gon Jewellery Company (SJC) and Bao Tin Minh Chau gold firm rated VND46.30 million and VND46.25 million each for each tael of gold in selling prices, respectively.
Similar prices were asked at the smaller gold shops in the city. Buying and selling price gap was still lower than VND1 million in most of the company.
On March 18, each tael of gold in Vietnam was $173 higher than its equivalent in the world market.
In the local forex market, the US dollar prices increased about VND30 since the beginning of the week to reach more than VND23,300 this morning in most commercial banks in Vietnam.
Vietcombank, BIDV, Techcombank, VietinBank and ACB were buying at VND23,150 to VND23,175 per dollar and selling at VND23,315 to VND23,324 per dollar.
In the flea market, the US dollar’s buying and selling rates were VND23,250 and VND23,270 respectively.
According to the analysis of Bao Viet Securities company (BVSC), the State Bank of Vietnam (SBV) move following other central banks to cut interest rates on March 16 will partly reduce the pressure of appreciation for the dong to other strong currencies.
Meanwhile, finance expert Nguyen Duc Do told local media: “The local exchange rate in 2020 will remain stable even though the currencies in the world may fluctuate sharply.”
Do explained as Vietnam was still on the watch list of the US Treasury Department, SBV will be very cautious in using exchange rate policy to support the economy.
The expert thought the foreign currency reserves of about $80 billion could ensure the stabilisation of forex rate in Vietnam.
According to this expert, the factors of supply and demand of foreign currencies will likely not be detrimental.
Do thought as the pandemic of COVID-19 slowed down the global economy, it also reduced the demand of import and export that needed foreign currencies.
http://bizhub.vn/markets/gold-prices-and-us-rates-go-up-in-the-market_314042.html
