The State Bank of Vietnam had kept the dong/dollar interbank exchange rate at 20,828 dong per dollar for the 39th consecutive day by late last week. The exchange rate stabilization has prompted people to sell dollars and keep dong.
Nguyen Ngoc Lan in Hoan Kiem district in Hanoi on February 16 morning came to Eximbank to ask about the dollar prices, planning to covert the dollar deposits at the bank to dong deposits.
Lan said that the central bank has been keeping the exchange rate unchanged for the last 40 days, which means that the exchange rate would be stable in the time to come. Therefore, Lan decided to sell the dollars she has to buy dong to deposit at banks. While the dollar deposit interest rates stay at two percent per annum, the dong deposit interest rate is 14 percent per annum. Therefore, it would be more profitable to deposit in dong than in dollar. In the past, the central bank sometimes had to devaluate the local currency by 5 percent, 7 percent or 10 percent, depending on the supply and demand. Once the supply was short, the exchange rate expectations increased.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.