Any Fed rate move won't change Vietnam's forex stance-cbank

Any Fed rate move won't change Vietnam's forex stance-cbank

Sun Sep 20, 2015 6:09am EDT
HANOI, Sept 20

Any possible interest rate hike by the U.S. Federal Reserve by year-end won't prompt Vietnam's central bank to alter its foreign exchange rate policy, the State Bank of Vietnam (SBV) said on Sunday.

Vietnam has devalued its currency via three official exchange rate cuts since Jan. 7, each by 1 percent, and also widened the dollar/dong trading band twice last month to 3 percent, from 1 percent before Aug. 12.

"The Vietnamese dong's exchange rate has sufficiently large ground to stay flexible against any adverse market changes at home and abroad not only between now and the end of 2015 but also in the first months of 2016," the SBV said in a statement.

"Any Fed rate hike will not influence the State Bank's policy on stabilising the exchange rate," the statement said.

The central bank also reiterated it stood ready to ensure exchange rate balance by selling foreign currencies into the market when necessary.

The dong has lost nearly 5 percent against the U.S. dollar so far this year on the interbank market. (Reporting by Ho Binh Minh; Editing by Shri Navaratnam)





http://www.reuters.com/article/2015/09/20/vietnam-economy-rates-idUSL4N11Q07X20150920

The Vietnamese dong’s exchange rate has sufficiently large ground to stay flexible against any adverse market changes at home and abroad not only between now and the end of 2015 but also in the first months of 2016,” the SBV said in a statement.

“Any Fed rate hike will not influence the State Bank’s policy on stabilizing the exchange rate,” the statement said. The central bank also reiterated it stood ready to ensure exchange rate balance by selling foreign currencies into the market when necessary. The dong has lost nearly 5% against the US dollar so far this year.