Rates may, however, be in for a tough year, according to Vietcombank Securities report.
Vietcombank Securities (VCBS) has predicted that the foreign exchange market and exchange rates will feel less pressure to the end of the first quarter but that relatively high risks exist for 2016 as a whole.
In a recent report VCBS noted that exchange rates increased from the end of 2015 to early January then gradually fell from the second half of January. Rates applied by most commercial banks fluctuated from VND22,325 to VND22,340 per USD to the end of February, or VND200 lower than the rate at the end of last year.
VCBS attributed the relatively stable exchange rates in the first quarter to less pressure from international factors, more flexible policy in exchange rate control, the application of a central-level exchange rate that is updated every day, and a balance between supply and demand thanks to foreign direct investment flows.
It expects rates to remain stable to the end of this quarter, when the State Bank of Vietnam may buy more foreign currencies to increase its reserves.