VINACHEM

The price of US dollar at commercial banks dropped on December 28 after staying at the ceiling rates for the last two weeks.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) posted its US dollar buying and selling prices at 22,440-22,510 VND, both down 30 VND from the end of last week.

Similarly, at the Vietnam Export Import Commercial Joint Stock Bank (Emximbank), the buying rate went down 30 VND to 22,430 VND per dollar and the selling rate was cut 27 VND to 22,520 VND per dollar.

The buying/selling rates at the Bank for the Investment and Development of Vietnam (BIDV) were 22,450- 22,520 VND respectively, both decreasing 15 VND from the week before.

Meanwhile, the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) lowered its buying rate by 60 VND to 22,380 VND and maintained its selling price at 22,547 VND.

From mid-December, the USD price has been increased constantly at commercial banks, which experts said is due to the “seasonal” factor at the end of the year and concern over the impact of the US Federal Reserve (FED)’s increase of interest rates, as well as expectations for a new exchange rate adjustment.

However, the State Bank of Vietnam (SBV) has reiterated its plan to keep the rate stable.

Recently, the SBV reduced interest rate for deposits in USD by both organisations and individuals to zero percent, which is said to be a right move to curb dollarization and stabilize the foreign exchange rate.

Nearly two weeks after this reduction, some banks reported that a number of individual customers switched their USD deposits to VND.