Bank USD price continues to hit new peak

On November 15, the State Bank announced the central exchange rate at 24,298 VND, up 8 VND compared to yesterday. With a 5% margin compared to the central exchange rate, commercial banks are allowed to buy and sell USD in the range of 23,083 - 25,512 VND.

Commercial banks also raised the selling price of USD to the ceiling, setting a new record high. On the buying side, the USD price at banks is still lower than at the end of October.

Specifically, Vietcombank increased slightly by 6-8 VND compared to yesterday, to 25,160 - 25,512 VND per USD. BIDV listed the exchange rate at 25,190 - 25,512 VND. Eximbank raised the USD price to 25,160 - 25,512 VND... Compared to the beginning of the year, each USD at the bank is currently nearly 4.5% higher.

Meanwhile, in the free market, foreign exchange points this morning listed the buying and selling prices at 25,600 - 25,709 VND, a slight decrease compared to yesterday. Accordingly, the difference between the USD price in the free market and the bank fluctuates around 200 VND for selling and 350-400 VND for buying.

The domestic USD price increased following the development of the USD Index - a measure of the strength of the greenback compared to other major currencies. The re-election of US President Donald Trump raised concerns among global investors about the risk of rising inflation, due to higher trade tariffs with China, as well as the risk of increasing US financial deficit and debt. As a result, long-term US bond yields increased, leading to a stronger USD.

At a recent National Assembly question-and-answer session, Governor Nguyen Thi Hong stated that the USD fluctuated complicatedly, at times falling sharply, but since the third quarter it has increased and is currently fluctuating at a high level. These developments have affected the domestic foreign exchange market.

"Stabilizing exchange rates and foreign exchange is difficult because it depends on real supply and demand in the market, that is, the amount of foreign currency spent on the economy and the revenue earned," said Ms. Hong.

In addition, the Governor also stated that the foreign exchange market is still dollarized, so it is affected by the psychological impact of expectations. Organizations and businesses own foreign currencies but do not want to sell them. The Governor said that when the market fluctuates too much, the State Bank will consider selling foreign currencies to stabilize and meet people's needs.

In contrast to the USD movement, the price of gold bars and plain rings today tends to be stable compared to yesterday. Saigon Jewelry Company (SJC) listed gold bars at 80 - 83.5 million VND per tael. The buying and selling price of plain rings at SJC is around 79.3 - 81.8 million.