SBV announces new foreign exchange rate mechanism

VGP – The State Bank of Việt Nam (SBV) decided to adjust the inter-bank average exchange rate to 20,693 VND/USD, according to its announcement on February 11.

February 11, 2011 6:36 PM GMT+7

The new exchange rate is effective since February 11.

SBV will also narrow the trading band for the VND/USD exchange rate from -3% to - 1%.

These measures are designed to manage the exchange rate actively and in line with the supply and demand of the foreign currency, guarantee the liquidity of the market, control the trade deficit, and assist the implementation of the monetary policies in the future, said SBV.

The promulgation of the new exchange rate regime is part of the SBV’s effort to realize the Government’s Resolution No. 02/NQ-CP on key solutions for implementation of the 2011 socio-economic development plan.

By Thùy Dung