Exchange rate falls as State Bank sells foreign currency forward

On August 26, the central exchange rate announced by the State Bank dropped sharply by 18 VND to 25,273 VND. According to the regulations on the exchange rate band of +-5%, the ceiling exchange rate that banks are allowed to list is 26,536 VND/USD, the floor exchange rate is 24,009 VND/USD.

Reference exchange rate at the Foreign Exchange Management Department: 24,077 VND/USD (buy) - 26,550 VND/USD (sell).

Exchange rate continues to cool down - Illustration photo.

Exchange rates listed at commercial banks, including Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank): 26,090 VND/USD (buy) - 26,480 VND/USD (sell); Vietnam Bank for Agriculture and Rural Development ( Agribank ): 26,140 VND/USD (buy) - 26,490 VND/USD (sell); Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV): 26,091 VND/USD (buy) - 26,451 VND/USD (sell); Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank): 26,209 VND/USD (buy) - 26,536 VND/USD (sell).

The domestic exchange rate has been adjusted downward in the context that the State Bank has started to implement foreign currency forward sales, with cancellation within 180 days at the selling price of VND26,550/USD from August 25. However, the transactions are only carried out for credit institutions with negative foreign currency status. The maximum amount of foreign currency sold for each bank in each transaction is to bring the bank's foreign currency status to balance. For forward transactions of USD100 million or more, credit institutions are allowed to cancel up to three times. If the forward transaction is under USD100 million, banks are allowed to cancel up to two times. The time to apply the method of selling foreign currency forwards within 2 days is August 25 and 26.

In the international market, the USD Index (DXY), a measure of the greenback's strength against other major currencies, recovered to 98.50 as of 7:00 a.m. (Vietnam time). Compared to the previous session, the EUR/USD exchange rate increased by 0.14% to 1.1636; the GBP/USD exchange rate increased by 0.08% to 1.3466; and the USD/JPY exchange rate decreased by 0.29% to 147.34.

However, compared to the end of 2024, the USD weakened more than 9% against other major currencies in the world currency basket.

Source: https://hanoimoi.vn/ty-gia-giam-khi-ngan-hang-nha-nuoc-ban-ngoai-te-ky-han-714011.html