After increasing to 24,700 VND per USD, the exchange rate on the free market has cooled down to 24,400 VND in recent days.
The USD/VND exchange rate on the banking market also had two consecutive declines. On the morning of July 26, Vietcombank lowered 35 dong both ways to 23,215 - 23,495 dong per USD. Calculated in two days, each USD transaction at Vietcombank has decreased by 45 dong. Similar developments were also recorded at BIDV.
At Eximbank, the price per USD decreased by 40 dong compared to yesterday to 23,230 - 23,460 dong. If calculated within a week, the price of USD at Eximbank has decreased by 70 dong.
This trend is similar to the greenback in the world market. The USD Index - a measure of the greenback's strength - is currently trading at 106.55 points, down 1% over the past two weeks but still at its highest level in nearly 20 years.
The USD/VND exchange rate has cooled down in recent days thanks to a series of moves to attract dong and inject USD money from the operator.
The State Bank has restarted the treasury bill issuance channel after two years of freezing and increased the attraction of money, reducing excess liquidity, raising VND interest rates on the interbank market.
According to data from the State Bank of Vietnam, overnight interest rates increased sharply from 0.3-0.4% a year (in early June) to 2.8%, as of July 22. Interest rates for other terms also increased.
Shinhan Bank's recent economic and foreign exchange outlook report forecasts that the dong trend will recover after weakening at the beginning of the third quarter.
The USD/VND exchange rate is expected to increase this year due to inflation concerns caused by monetary tightening policies earlier than expected by the US Federal Reserve - Fed and rising raw material prices. However, this rate will gradually decrease at the end of the year and maintain around VND 23,000 thanks to economic stimulus policies, domestic demand stimulus, recovery of tourism industry and foreign investment inflow. Shinhan Bank evaluation.
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