The State Bank of Vietnam expands the exchange rate band to 5%.

The US Federal Reserve and other major central banks have accelerated their plans to tighten monetary policy and quickly raise operational interest rates since the beginning of 2022, according to the State Bank.

On October 17, 2022, the Fed and other central banks across the world will tighten monetary policy and hike interest rates to proactively adjust to unexpected events in the global economy.

As a result, the dollar-dong trading band increased from +/-3% to +/-5%.

The central currency rate was dramatically increased by the State Bank, rising to VND 23,586/USD from the end of last week.

The floor and ceiling rates for commercial banks are VND 22,406 /USD and VND24,765 /USD, respectively, with a +-5% rate

After seven years, this is the first time SBV widened the exchange rate band. The SBV last changed the exchange rate band from +-2% to +-3% in August 2015.