Oct 25: Central Bank Quotes Dollar At VND20,748

by lexie Tue Oct 25, 2011 11:33 am

October 25, 2011

Oct 25: Central Bank Quotes Dollar At VND20,748

Vietnam's central bank set the U.S. dollar's exchange rate at VND20,748 Tuesday, unchanged from Monday.

Currency dealers said rates in the free market rose after domestic gold prices increased to above VND44 million a tael ($1,710 per troy ounce) earlier Tuesday from VND43.7 million Monday. Local dealers often use gold prices to calculate dollar rates.

Rates also rose because "demand for the greenback is stronger as some banks are buying dollars to boost their buffer funds after selling large volumes of gold in recent weeks," said a dealer with a Ho Chi Minh City-based commercial bank.

The dealer expects the dollar-dong rate to face upward pressure toward the end of the year as Vietnam's trade deficit will likely continue expanding through the fourth quarter, which will force the central bank to buy more dollars to cover the deficit. "State media just reported October's trade deficit at $800 million, so that will push up the dollar rate soon," the dealer said.

http://www.vietfinancenews.com/2011/10/oct-25-central-bank-quotes-dollar-at.html