For the second time in a month, the movement of exchange rate of USD/VND reopened the possibility that the State Bank of Vietnam (SBV) would buy back foreign currency.
The ability to come along with the continuous decline of USD price in the interbank market earlier this week.
Specifically, in the first two sessions of this week (July 29 and 30), the USD price traded in the interbank market decreased by a total of 15 dong, officially at 23,200 dong. This has also been the buying price listed by the Transaction Department of SBV since the beginning of the year.
Accordingly, this was the second time in the last month that the USD price has reached the SBV’s buying threshold in the interbank market. From July 11-15, the USD price in this market fell quickly to the above 23,200 dong mark, and the regulator returned to buy significantly, as noted by the participants in this market.
Thus, after the record net buying over the first three months of this year and then interrupted since the end of April due to fluctuating exchange rates, the expected foreign exchange reserves continue to increase through the ability of SBV to re-purchase foreign currencies.
This movement is accompanied by favourable foreign currency supply from the significant trade balance surplus in the first seven months of the year, a strong source of indirect investment. Recently, the market recorded a number of large transactions attracting foreign currencies such as Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) successfully issued $300 million of international bonds while Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) sold its capital with a record of nearly $900 million for KEB Hana Bank. And the flow of international bond issuance still continues in VPBank, Tien Phong Commercial Joint Stock Bank (TPBank) and SHB Saigon Hanoi Commercial Joint Stock Bank (SHB).
