USD increases in official market, decreases in free market

At the end of the week, the central exchange rate announced by the State Bank reached 25,249 VND/USD, an increase of 21 VND compared to the end of last week. Exchange rates at commercial banks were also adjusted simultaneously, for example, at the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the USD exchange rate increased by 50 VND in both directions, to 26,060 VND/USD (buy) - 26,450 VND/USD (sell); Joint Stock Commercial Bank for Investment and Development of Vietnam ( BIDV ) listed the USD price increased by 47 VND in both directions: 26,091 VND/USD (buy) - 26,451 VND/USD (sell).

Exchange rate increases on the official market - Illustration photo.

In the free market, the USD selling price only increased by 25 VND in both directions, to 25,450 VND/USD (buy) - 26,505 VND/USD (sell), down 30 VND compared to the closing session last week.

In the international market, the DXY index, a measure of the strength of the USD against a basket of major currencies, continued to decline slightly last week, falling to around 97.88 points, continuing to lie deep below the 100-point threshold after a strong increase in early August.

Other foreign currencies such as EUR increased quite strongly, in which, at Vietcombank , it increased by 120.8 VND for buying and 127.1 VND for selling, trading at 29,900 VND/EUR (buying) - 31,477 VND/EUR (selling).

Along with the increase in EUR, the British Pound (GBP) also climbed, in which, Vietcombank increased 370.1 VND in buying price and 385.7 VND in selling price, up to 34,692 VND/GBP (buy) - 36,165 VND/GBP (sell).

According to experts, the State Bank flexibly adjusts the central exchange rate to absorb shocks from the international market and contribute to stabilizing the foreign exchange market. It is forecasted that the foreign exchange market will be more positive at the end of the year thanks to expectations that the US Federal Reserve (Fed) will cut interest rates and trade tensions will cool down compared to the previous period, thanks to which investment capital may return to Vietnam instead of maintaining a cautious mentality.

For the open market, last week, in the mortgage channel, there were 59,476.82 billion VND in winning bids for 7-day, 14-day, 28-day and 91-day terms; 79,894.49 billion VND maturing on the mortgage channel. The State Bank continued not to bid for State Bank bills. In total, last week, the State Bank withdrew a net 20,417.67 billion VND through the open market channel; there were 196,041.98 billion VND circulating on the mortgage channel, there were no more State Bank bills circulating on the market.

Meanwhile, interbank interest rates fell sharply in most terms. For example, overnight terms fell by 2.1%, from 6.25% to 4.15%/year; 1-week terms fell by 1.69%, to 4.42%/year; 2-week terms fell by 1.87%, to 4.41%/year. 1-month terms only fell slightly by 0.58%, to 4.93%/year, while 3-month terms remained almost unchanged, down 0.02%, remaining at 5.66%/year. The strongest cooling was concentrated in the short-term group, showing that short-term capital demand among banks has decreased significantly.

Source: https://hanoimoi.vn/dong-usd-tang-gia-tren-thi-truong-chinh-thuc-giam-tren-thi-truong-tu-do-712972.html