The stability of the exchange rate indicates the improved value of the local currency and the minor difference of the rate in black market and official market.
The stability is mainly attributed to the sharp decrease of trade deficit against the same period of 2011. Statistics show that as of July 15, trade deficit stood at US$423 million.
Meanwhile, FDI disbursement only dipped 0.8% but ODA disbursement recorded a fairly high growth.
Foreign currency trading in the black market has been removed, which helps ease pressure on the balance of payment.
Besides, interest rate policy has supported the local currency, contributing to the exchange rate stability. The two-digit interest rate was brought down to 9% per year for loans up to one year term and 11- 12% per year for long-term loans.
At the same time, the US dollar interest rate for residents is capped at %, while the dong interest rate ranges from 10% to 12%.
Furthermore, exchange rate policies have also enjoyed favorable conditions, such as easing inflation and the tight control over gold market to prevent gold smuggling.
By Thuy Dung