Vietnam Dong extends gain as SBV strengthens reference rate to VND20,678, February 18 2011
Vietnam’s dong on February 18 extended gain as the State Bank of Vietnam (SBV) strengthened the reference rate midpoint to VND20,678 from VND20,683 yesterday, the central bank’s data showed.
Given the latest midpoint rate, the dollar prices could move between 20,471 and 20,885 in interbank transactions, within the central bank-imposed daily trading band of +/-1%.
Dollar prices were quoted at VND20,785 and VND20,885 for bid and ask, respectively at Vietcombank.
The domestic currency advanced for the seventh consecutive day after the country’s central bank devalued it by about 7% on Feb 11 and narrowed the trading band to +/-1% from +/-3% on either side of the midpoint.
However, it continued to slump in the free market as dollar prices surged VND160,000 to VND21,900 and VND22,050 for bid and ask, respectively.
The SBV on late February 17 raised the refinance rate by 200 basis points to 11% while keeping the base rate, which served as the benchmark until recently, unchanged at 9% and the discount rate at 7%.
Analysts said the move may help support the currency, which had been slipping after Friday’s 8.5% devaluation, as well as curb inflation. But further steps would be necessary with the consumer price index expected to keep rising after soaring to a near-two year high of 12.2% in January
Vietnam’s dong on February 18 extended gain as the State Bank of Vietnam (SBV) strengthened the reference rate midpoint to VND20,678 from VND20,683 yesterday, the central bank’s data showed.
Given the latest midpoint rate, the dollar prices could move between 20,471 and 20,885 in interbank transactions, within the central bank-imposed daily trading band of +/-1%.
Dollar prices were quoted at VND20,785 and VND20,885 for bid and ask, respectively at Vietcombank.
The domestic currency advanced for the seventh consecutive day after the country’s central bank devalued it by about 7% on Feb 11 and narrowed the trading band to +/-1% from +/-3% on either side of the midpoint.
However, it continued to slump in the free market as dollar prices surged VND160,000 to VND21,900 and VND22,050 for bid and ask, respectively.
The SBV on late February 17 raised the refinance rate by 200 basis points to 11% while keeping the base rate, which served as the benchmark until recently, unchanged at 9% and the discount rate at 7%.
Analysts said the move may help support the currency, which had been slipping after Friday’s 8.5% devaluation, as well as curb inflation. But further steps would be necessary with the consumer price index expected to keep rising after soaring to a near-two year high of 12.2% in January