Since the beginning of 2022, the US Federal Reserve (Fed) and several major central banks have accelerated the process of tightening the monetary policy and raised the key interest rates. Moreover, the Russia-Ukraine war has caused further disruptions to the global supply chain, resulting in hiking oil and other commodity prices and raising volatility in domestic and international markets.
In that context, the SBV has conducted consistent measures, instruments and interventions in a proactive and flexible manner with a view to maintaining stable and smooth operations of the money and the forex markets, thereby contributing to maintaining the macro-economic stability, controlling the inflation, supporting the implementation of the objectives as set out in the Socio-economic Recovery and Development Plan in line with Resolution 43 of the National Assembly and Resolution 11 of the Government.
In order to proactively adapt to the unpredictable developments in the international market and the trends of the monetary policy tightening and raising of the interest rates by Fed and the major central banks around the world, on October 17, 2022, the SBV issued Decision No. 1747/QD-NHNN stipulating the spot exchange rate of VND to the key foreign currencies of the licensed credit institutions. Accordingly, the USD/VND spot exchange rate band has been adjusted from ±3% to ±5%. The SBV would continue to closely monitor the market developments, coordinate the monetary policy tools, and stay ready to sell foreign currencies to intervene and maintain the stability of the market./.
Source: sbv.gov.vn