Bank USD exchange rates hit their ceiling.

Today, the US dollar exchange rate at banks reached its ceiling of 24,452 VND, matching the record high set in the middle of the year.

On October 22nd, the State Bank of Vietnam announced the central exchange rate at 22,240 VND, an increase of 12 VND compared to yesterday. With a 5% margin compared to the central exchange rate, commercial banks are allowed to trade USD within the price range of 23,028 VND to a maximum of 25,452 VND.

Commercial banks also simultaneously increased the US dollar exchange rate to its ceiling today. Vietcombank listed the exchange rate at 25,062 - 25,452 VND, an increase of 22 VND compared to yesterday. The buying and selling rates at BIDV rose to 25,188 - 25,452 VND; Eximbank also raised them to 25,150 - 24,452 VND.

After several consecutive upward sessions, USD price The bank increased the exchange rate by 680 dong, equivalent to 2.75%, compared to the beginning of the month. Compared to the beginning of the year, each USD has increased by more than 1,000 dong, equivalent to a 4.2% return.

Currently, bank exchange rates are trading quite close to the dollar rate on the black market. This morning, foreign exchange bureaus were buying and selling USD at around 25,460 - 25,560 VND.

Commenting on the exchange rate trend, Mr. Tran Hoang Son, Market Strategy Director of VPBank Securities Company (VPBankS), assessed that this increase is mainly due to seasonality.

According to VPBank's statistics, October each year is the time when businesses increase their demand for USD to import goods for year-end exports during the Christmas and New Year holidays in the West. In addition, the demand for USD to fulfill international debt obligations can also affect the exchange rate in the short term.

Furthermore, not only the VND, but also the currencies of emerging markets have recently been affected by the strengthening USD Index. The possibility that the US Federal Reserve (Fed) may prolong interest rate cuts longer than expected has caused the USD Index to rise continuously. In addition, recent US economic data showing much greater stability is further strengthening the USD.

However, this expert believes that with the trend of interest rate reductions in the near future, the USD Index may stabilize. At the same time, after October, domestic demand for USD may decrease, thereby helping the exchange rate to stabilize again.

Source