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Dong is one of the most stable currencies in Asia

ANN/THE STAR – Amid fluctuations in the global financial market, the exchange rate in Vietnam has remained stable in the first four months of this year, and the Vietnamese dong is considered one of the most stable currencies in Asia, according to experts.

Market analysis reports released by Mirae Asset Securities Vietnam showed that in April, the United States (US) dollar/dong exchange rate dropped 0.2 per cent and the average exchange rate hovered around VND23,500 per US dollar during the month. The rate has remained stable throughout the January to April period.

The United Overseas Bank (UOB) rated the Vietnamese dong as one of the most stable currencies in Asia, despite significant changes in the Fed’s interest rate hike expectations as well as concerns about a global recession and instability of the US banking system.

Mirae Asset noted that the State Bank of Vietnam (SBV) had bought a large volume of foreign currency in the first four months, raising the foreign exchange reserves to around USD90 billion.

Head of the foreign exchange management department under the SBV Dao Xuan Tuan said that since the end of 2022, the foreign exchange market has developed positively and gradually become stable.

The US dollar/dong exchange rate tends to decrease and stabilise again, he said, adding that the recovery of the Vietnamese currency against the US dollar since December 2022 was similar to that of many other currencies in the region such as the Japanese yen, Chinese yuan, the won of South Korea and the Thai baht.

Tuan said that the increase in foreign currency supply had enabled the SBV to buy more foreign currencies for the foreign exchange reserves.

In the first four months of this year, the SBV bought nearly USD4.9 billion from credit institutions, up about USD1 billion from the amount recorded at the end of the first quarter of 2023.

A vendor counting dong banknotes in Vietnam. PHOTO: THE STAR
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