Experts said the State Bank of Vietnam (SBV) will succeed in keeping theVND-USD exchange rate from fluctuating to below 2 percent this year.
Somehave been concerned that the continuing sharp fall in prices of oil,which is one of Vietnam's key exports, will negatively impact onforeign currency supply and demand.
However, Deputy Director ofthe Central Institute for Economic Management Vo Tri Thanh said at arecent conference that the SBV will successfully keep the foreignexchange rate from fluctuating to below 2 percent, owing to supply anddemand of the country's foreign currency sources, as well as the centralbank's competence in successfully managing the forex market for thepast few years.
He added that Vietnam's foreign currencyreserves have currently hit a record high of roughly 35 to 38 billionUSD, while balance of payments this year are forecast to have reported asurplus of roughly 7 to 8 billion USD.
However, Thanh noted thatit will be important to see how the central bank adjusts the rate tostabilise the forex market, while avoiding negatively affecting otherindices.
The Bao Viet Securities Co. (BVSC) also forecast thatthe forex market will remain stable in 2015 as well. The companyanticipates the exchange rate of the dong against the dollar to varybetween 21,600 VND and 21,800 VND till the end of this year.
Theforex market will still experience ‘rising waves.' However, the centralbank will successfully intervene to keep the exchange rate fluctuationwithin the set target.
Trust in the SBV’s successful policiesformulated over the last two years has also helped the central bankexecute its policies more effectively, BVSC said.
However,BVSC said the central bank could consider the devaluation of the dongagainst the dollar and implement the devaluation with a certaintimeline, in a bid to boost the competitiveness of Vietnamese exports.-VNA
Somehave been concerned that the continuing sharp fall in prices of oil,which is one of Vietnam's key exports, will negatively impact onforeign currency supply and demand.
However, Deputy Director ofthe Central Institute for Economic Management Vo Tri Thanh said at arecent conference that the SBV will successfully keep the foreignexchange rate from fluctuating to below 2 percent, owing to supply anddemand of the country's foreign currency sources, as well as the centralbank's competence in successfully managing the forex market for thepast few years.
He added that Vietnam's foreign currencyreserves have currently hit a record high of roughly 35 to 38 billionUSD, while balance of payments this year are forecast to have reported asurplus of roughly 7 to 8 billion USD.
However, Thanh noted thatit will be important to see how the central bank adjusts the rate tostabilise the forex market, while avoiding negatively affecting otherindices.
The Bao Viet Securities Co. (BVSC) also forecast thatthe forex market will remain stable in 2015 as well. The companyanticipates the exchange rate of the dong against the dollar to varybetween 21,600 VND and 21,800 VND till the end of this year.
Theforex market will still experience ‘rising waves.' However, the centralbank will successfully intervene to keep the exchange rate fluctuationwithin the set target.
Trust in the SBV’s successful policiesformulated over the last two years has also helped the central bankexecute its policies more effectively, BVSC said.
However,BVSC said the central bank could consider the devaluation of the dongagainst the dollar and implement the devaluation with a certaintimeline, in a bid to boost the competitiveness of Vietnamese exports.-VNA
