According to the weekly currency newsletter announced on March 18 by SSI Retail Research Analyst of SSI Securities Company, the dollar on the world market last week dropped 0.7 points to 96.6 points. Meanwhile, both the British pound and the euro increased in the context of Brexit still not being over.
Meanwhile, the Chinese yuan continues to move sideways against the US dollar while the US and China still maintains positive negotiations. China has also passed the new Foreign Investment Law effective January 1, 2020 with the terms of protecting foreign investors’ interests even though the meeting of the two countries’ leaders was canceled later this month, showing that the two parties still have many issues to negotiate.
In the domestic market, the USD/VND exchange rate remained at 23,150/23,250 at banks while it increased by 15 dong in the buying side and 10 dong in the selling side on the free market, at 23,220/23,230. The State Bank of Vietnam (SBV) continued to raise the central exchange rate and selling rate by 11 dong per US dollar and 12 dong per US dollar respectively, to 22,957/23,596.
In this week, the SBV adjusted the central exchange rate to decrease by five dong to 22,952 dong per US dollar on March 18, then increase by 8 dong in March 19 to 22,960 dong. In commercial banks, the adjustment of the exchange rate took place on March 18 afternoon by adding 10 dong to the common rate of 23,160 to 23,260 dong per US dollar, and it remained in the morning of March 19.
According to analysts, the difference between dong and US dollar interest rate is narrowing significantly (0.85 to one percent per year for overnight interest rate) but still at a positive level. The positive prospect of disbursement resources from foreign direct investment (FDI) and foreign institutional investment (FII) ensures abundant US dollar supply, which will support the stability of VND/USD exchange rate in the near future when the international environment remains stable.
