With enough foreign reserves, Vietnam is willing to intervene for a stabilized FX market

The forex market has been under pressure due to the development of coronavirus outbreak after the Lunar New Year Holiday. However, the exchange rate fluctuations were not big and are not much different from international financial market.

Recently, the exchange rate tended to increase as the fluctuations in the world financial market became stronger. Domestically, the selling rate on the free market has soared to nearly VND 24,000, while the exchange rate in the market is about VND23,600.

However, the balance between supply and demand of foreign currencies has basically no big changes. The trade balance reached a surplus of $1.82 billion in the first 2 months of 2020 and continued to have a surplus of $880 million in March 2020, he said.

In the coming time, the State Bank of Vietnam will continue to closely monitor the movements of domestic and foreign markets, manage the central exchange rate flexibly and appropriately, said the central bank’s leader.

In the first months of 2020, the central bank bought a large amounts of foreign currencies to support foreign exchange reserves, contributing to strengthening the national financial and monetary security.

Source: SBV