Central exchange rate increased to a record high last week

At the end of the week (session on June 6), the State Bank adjusted the central exchange rate down by 3 VND, down to 24,992 VND/USD. With a trading band of 5%, the USD exchange rate at commercial banks is currently allowed to fluctuate in the range of 23,742 - 26,242 VND/USD. The reference exchange rate at the State Bank's Transaction Office decreased to 23,793 - 26,191 VND/USD.

Thus, last week (from June 2 to 6), the central exchange rate increased sharply by 34 VND in two consecutive mid-week sessions, bringing the central exchange rate above the 25,000 VND mark, the highest ever (25,004 VND/USD). Compared to the end of the previous week, the central exchange rate increased by a total of 14 VND, to 24,992 VND/USD.

Thanks to the decrease in the central exchange rate, at the end of the week, commercial banks also adjusted the exchange rate down after many days of increasing.

For example, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) listed the exchange rate: 25,830 VND/USD (buy) - 26,220 VND/USD (sell), down 24 VND; Joint Stock Commercial Bank for Investment and Development of Vietnam ( BIDV ): 25,881 VND/USD (buy) - 26,241 VND/USD (sell), up 17 VND for buying and down 13 VND for selling.

In fact, the USD exchange rate at commercial banks also had a week of many fluctuations. After being stable in the first session of the week at 26,200 VND/USD (June 2), the exchange rate increased for two sessions and reached 26,254 VND on June 4, then decreased in the last two sessions of the week. Overall, the USD selling rate of commercial banks increased by 20 VND for the whole week.

In the free market, the exchange rate closed at 26,225 VND/USD (buy) - 26,325 VND/USD (sell). Specifically, only on the 4-6 session, the free USD exchange rate increased by 10 VND in the selling direction; the remaining 2 sessions remained unchanged and 2 sessions decreased. Compared to the end of last week, the free selling exchange rate decreased by 35 VND, showing a trend of reducing exchange rate pressure in the informal sector.

The EUR exchange rate also increased sharply last weekend, closing the week up 215 VND for buying and 227 VND for selling compared to the end of last week, trading at 28,963 VND/EUR (buy) - 30,550 VND/EUR (sell) at Vietcombank . The EUR increased mainly due to fluctuations in the world market.

In the international market, the DXY index, which measures the strength of the USD against six major currencies in the currency basket, increased by 0.03% to 99.04 points. The EUR increased to 1.1495 USD, approaching the 3-year peak of 1.1573 USD set on April 20, after the European Central Bank (ECB) signaled the end of its 1-year policy easing cycle by implementing the 8th interest rate cut. Weak data on the US labor market continued to put pressure on the USD.

Foreign investors continue to be worried as tariff negotiations between the United States and several other countries have yet to yield results, causing the USD to depreciate against several other major currencies on the world market.

For Vietnam, the exchange rate has not shown any signs of cooling down, as the State Bank has made efforts to maintain low interest rates through continuous measures to support liquidity in the system to promote economic growth, but has created pressure on the exchange rate.

Domestic investors expect and look forward to the Government taking effective steps in trade negotiations with the US, combined with a stable political foundation, clear reform orientation and a favorable macro environment, thereby creating many new development opportunities for Vietnam in the coming time. The current low interest rate level creates conditions for commercial banks to reduce lending interest rates, but is the reason why the exchange rate has not decreased. This is a difficult problem to balance.

As for the open market operation (OMO), at the end of the week, the State Bank did not bid for treasury bills; did not inject capital through the OMO channel, while the maturity amount was VND 2,593.09 billion, equivalent to a net withdrawal of VND 2,593.09 billion through open market operations, with VND 34,932.45 billion circulating on the mortgage channel. In general, in the first week of June, the State Bank only provided liquidity of VND 6,330.62 billion to the market through the OMO channel, equivalent to a net withdrawal of VND 15,029.6 billion.

Source: https://hanoimoi.vn/ty-gia-trung-tam-tang-cao-ky-luc-tuan-qua-704911.html