Central bank to determine new rates when internal and external factors call for an adjustment.
The State Bank of Vietnam (SBV) is to announce foreign exchange rates every day, Deputy Governor Nguyen Thi Hong told local media. “The goal in adjusting exchange rates is to stabilize the foreign exchange market and support macro-economic stability and economic growth,” she said.
Exchange rates will be determined on the basis of any movements between the USD and a basket of other major currencies, rates in the interbank market, and on the targets of Vietnam’s macro-economic, fiscal, and monetary policies.
The degree of reference to these factors will be carefully calculated by the central bank to ensure flexibility while maintaining proper management under current mechanisms.
Ms. Hong stressed that determining rates in a more flexible manner is necessary so that a timely response is made to any domestic or international movements, especially given that Vietnam has signed a number of free trade agreements (FTAs) recently.
The central bank will also implement measures to ensure the harmonization of targets in stabilizing foreign exchange markets, to contribute to macro-economic stability.