On June 22.6, the State Bank increased the central exchange rate by 5 dong, to 23.727 dong/USD. In the interbank market, the USD price traded between banks decreased by 16 dong to 23.505 dong/USD. Although the USD interest rate slightly decreased from 0,01 to 0,02%, it was still much higher than the VND interest rate in short terms. Specifically, the overnight interest rate is at 4,83%/year, 1 week at 4,91%/year, 2 weeks 5%/year, 1 month at 5,15%/year.
The price of USD transactions between banks decreased
Commercial banks reduced the USD price from 10 to 20 dong, in which the selling price decreased more than the buying price. Eximbank bought USD at 23.280 – 23.360 VND, sold 23.660 VND; Vietcombank bought USD at 23.310 – 23.340 VND, sold 23.680 VND… The price of green silver coin decreased by 10 dong, to 23.560 dong in the buying afternoon, sold out to 23.610 dong.
In the international market, the greenback's price dropped sharply, the USD-Index fell from 102,5 points to 102 points. The speech of Mr. Jerome Powell - Chairman of the Federal Reserve (Fed) on monetary policy is likely to be tightened further to achieve the 2% inflation target set out. In a hearing last night before the US Senate Financial Services Committee, Jerome Powell said that with inflation remaining above the long-term target of 2% and the labor market tightening, the Federal Open Market Committee (FOMC) has raised interest rates by 5% over the past year.
The Fed will continue to make decisions on a meeting-by-meeting basis, based on data on the economic outlook and inflation. The Fed chairman reiterated that the agency is committed to bringing inflation back to the 2% target and keeping it stable in the long term. The cooling of inflation may require a period of economic growth below potential. After Mr. Powell's speech, the market thinks that the Fed will raise interest rates by 0,25% at the July meeting. CME's tool forecasts there is an 7% chance that the Fed will continue to raise interest rates at this meeting, and only 80% will continue to keep flat at 20% - 5%.
