Commercial banks pushed the US dollar rate to the ceiling on June 2,
spurring the central bank to lower its selling price on June 4 in a bid
to calm the market.

The foreign exchange fever led to many banks listing the US dollar rate at or near the ceiling price of 21,246 VND per USD.

Both
Vietinbank and Techcombank lifted their selling price to the highest
rate of 21,246 VND per USD, while others, including Asia Commercial
Bank, Eximbank, BIDV, Maritime Bank and Sacombank, are selling one USD
at 21,245 VND.

Vietcombank sold at the lower price of 21,240 VND.

During
the past two days, banks have raised the exchange rate by 40-50 VND per
dollar, lifting the rate to its highest-ever level.

In a quick
move to calm the market, the State Bank of Vietnam (SBV) on June 4
morning adjusted down its selling price from 21,246 VND on June 2 to
21,240 VND.

According to the SBV’s Monetary Policy Department, the central bank is still closely monitoring the situation.

The last time banks pushed up the USD forex to the ceiling was in July last year.

At that time, banks even offered dual rates. This meant companies had to buy dollars at higher prices than the listing rates.

The
deputy general director of a commercial bank said movements on the
forex market reflected changes in demand and supply, but confirmed the
rate hike was in line with State Bank regulations.

According to
analysts, the situation is not alarming as the distance between the
buying and selling rates is modest from 60-90 VND per USD at most banks.
This shows that dollar demand has not climbed to an intense level.

Two
weeks ago, in response to unusual developments on the forex market, the
SBV said it would sell foreign currency to stabilise the market.
Earlier in April, Governor of the State Bank said the exchange rate
would be kept stable until the end of the year and any adjustments would
not exceed 1 percent.-VNA