Decision to retain base interest rate sees Vietnamese banks adjust exchange rates.
The decision of the US Federal Reserve to not increase base interest rates at its meeting on September 17 saw the VND/USD exchange rate at commercial banks come down.
Vietcombank cut its exchange rate by VND25 in both buying and selling, to VND22,445 in buying and VND22,505 in selling, while Vietinbank reduced its rate by VND40, to VND22,445 in buying and VND22,550 in selling.
The exchange rate at Eximbank is now VND22,430 in buying and VND22,510 in selling, falling VND40 and VND35, respectively. DongABank has also adjusted its exchange rate by VND40 in buying and VND35 in selling, to VND22,460 and VND22,510, respectively.
Bloomberg said there were three reasons behind the Fed decision: fluctuations in international markets, increasing global economic risks, and low inflation in the US.
Although interest rates were kept at near zero, Fed Chair Janet Yellen told a press conference after the meeting that most policymakers still expect rates to increase this year.
“I do not want too much focus on the recent impact of the world’s economic situation as this will not alter the Fed’s outlook,” she said. “The economy is still performing well and is expected to continue performing well.”