On the morning of 5/8, several unofficial foreign exchange points, commonly known as the black market, lowered their US dollar buy price to 26,000-26,100 dong. The sell price for a US dollar ranged from 26,100-26,200 dong.
In contrast, leading commercial banks such as Vietcombank, Vietinbank, and BIDV were buying US dollars at 26,050-26,080 dong and selling them around 26,460 dong.
This means the black market buy price for the US dollar is currently 30-50 dong lower than banks, while the sell price is nearly 300 dong lower. This marks the first time in many years that both the buy and sell rates for the US dollar in the unofficial market have fallen below official bank rates. Previously, only the black market sell price occasionally dropped below bank rates, while the buy price consistently remained higher.
According to a manager of a foreign exchange point in central Ho Chi Minh City, the demand for US dollar transactions among the public has significantly decreased compared to the beginning of the year, leading to a simultaneous cooling of both buy and sell prices.
This development implies that individuals converting US dollars to Vietnamese dong would benefit more from transacting at a bank. Conversely, those looking to purchase US dollars might find cheaper rates at unofficial foreign exchange points.
However, engaging in foreign currency transactions at unlicensed exchange points carries legal risks. Current regulations stipulate that individuals are only permitted to buy and sell foreign currency at licensed credit institutions or authorized foreign exchange agents.
Despite the central exchange rate consistently rising, the US dollar conversion rate at banks has remained stable.
The State Bank of Vietnam (SBV) announced on the morning of 5/8 that the central exchange rate increased by 25 dong, reaching 25,405 dong. The adjustment margin has shown signs of widening in recent weeks, pushing the reference rate to a record high. Compared to two months ago, the central exchange rate has increased by 2%.
The central exchange rate is updated daily by the regulator and calculated based on interbank market developments, the currency basket of major trading partners, macroeconomic balance, and policy objectives. This rate serves as a reference for commercial banks to adjust their actual transaction prices within a 5% margin (which for today is 24,134-26,675 dong). However, most banks are currently trading well below the allowed ceiling.
In their monetary report last month, analysts at MB Securities Company noted that the local currency maintained a relatively stable position during the first half of the year, but pressure on the exchange rate remains. The group forecasts the exchange rate to fluctuate between 26,800-27,000 dong from now until the end of the year, representing an increase of 2-2,8% compared to the start of the year.
Phuong Dong
