Foreign Exchange Rate Continues To Slip

The Viet Nam Dong /US Dollar exchange rate at commercial banks continued to decrease in early August. Trading is much lower than the 130 VND of the State Bank’s ceiling price.

Export enterprises may see a slight decrease in revenue. However, the cooling down of the foreign exchange rate helps boost domestic production and control inflation. This enterprise supplies about 600 products to domestic and foreign automobile and motorbike manufacturers.

The enterprise has to use foreign currency to import its entire inventory of steel materials, a monthly cost of 320,000 USD. This accounts for the largest spending amount in the making of their products. According to the State Bank of Viet Nam, the VND depreciated by nearly 5% against the US at one point.

However, it has lowered to only 3.85% since early August. This is a result of the weakening USD and SBV’s effective use of foreign exchange reserves. Consequently, it helps lift the business’s financial burden.