Bank exchange rate hits 26,500 VND/USD

The USD/VND exchange rate has been increasing continuously over the past week, reaching an all-time high at commercial banks. Pressure on the exchange rate comes from both international factors and looser domestic monetary policy.

On the morning of August 20, the State Bank announced the central exchange rate at 25,255 VND/USD, an increase of 10 VND/USD compared to yesterday and officially breaking the old record set on August 2 (25,249 VND). With a 5% amplitude, the ceiling exchange rate allowed for transactions is up to 26,517 VND/USD.

At Vietcombank , the listed exchange rate increased to 26,140 VND/USD (buying) and 26,500 VND/USD (selling), an increase of 10 VND/USD compared to yesterday and a total increase of 50 VND/USD compared to the end of last week. In the free market, many stores also increased the USD transaction price significantly, raising it to 26,510 VND for buying and 26,580 VND for selling.

The greenback’s rally in the international market contributed to this significant increase. The US Dollar Index (DXY) traded around 98 points and was at its highest level in more than a week. The greenback benefited from geopolitical uncertainty, as US President Donald Trump held a series of high-level meetings with European and Ukrainian leaders and prepared for a trilateral conference with Russia, aiming at a peaceful solution to the Ukraine conflict.

However, the market is still leaning towards the possibility that the US Federal Reserve (Fed) will cut interest rates in September. The odds of a 25 basis point cut have decreased compared to last week but remain high (84%). Investors are paying attention to the speech of Fed Chairman Jerome Powell at the Jackson Hole Conference, taking place on the evening of August 22, Vietnam time. This is where investors expect to find clues about the Fed's next moves.

In addition to international pressure, loose monetary policy is also the main reason for the increase in exchange rates. According to the new regulations expected to be applied from October 1, 2025, credit institutions that are the compulsory transferees of commercial banks under special control under the provisions of the Law on Credit Institutions are entitled to a 50% reduction in the required reserve ratio. The above change can significantly support liquidity for many credit institutions in the context of high credit growth.

"This will create momentum to support the economy and reduce pressure on deposit interest rates. However, we still maintain the view that deposit interest rates will continue to increase at the end of the year. Meanwhile, lending interest rates will continue to remain low to support economic growth," said an expert from Yuanta Securities.

Last week, interbank interest rates fell sharply in many terms, especially the overnight interest rate which fell 176 basis points to 4.49%, the 1-week term which fell 142 points to 4.69%, the 1-month term which fell 86 points to 4.65%. The difference between the VND - USD overnight interest rate fell to 15 basis points.

Domestic gold prices also increased sharply despite the decline in the international market. Currently, the world gold price fluctuates around 3,330 USD/ounce. However, the domestic SJC gold bar price increased sharply with the selling price reaching 125 million VND/tael. At Saigon Jewelry Company, SJC gold is listed at 124 million VND/tael (buy) and 125 million VND/tael (sell).

World gold prices are being supported by geopolitical risks, but are still being held back by the strengthening USD. Domestically, the large gap between SJC gold prices and world prices continues to widen.

Source: https://baodautu.vn/ty-gia-ngan-hang-cham-moc-26500-vndusd-d364666.html