BizLIVE - The Vietnamese central bank has net bought $6 billion worth of foreign currency since end-2016.
Vietnam’s Forex Reserves Hit All-time High of $45 Billion
Vietnam's forex reserves have hit a new record high of $45 billion.
Vietnam has continued to buy in foreign currency to enrich its reserve fund since the start of this year, bringing the total to $45 billion currently, the highest number announced so far, up $6 billion from the end of 2016.
The figure was unveiled by Nguyen Phu Trong, general secretary of the Communist Party of Vietnam (CPV), in his closing remarks at the sixth plenary of the Central Committee in Hanoi on October 11.
At a cabinet meeting on July 3, Governor of the State Bank of Vietnam Le Minh Hung put the country’s reserve fund at $42 billion, up $1 billion from end-2016.
As such, the central bank has pumped a large amount of dong to rake in around $3 billion since June.
Vietnam’s forex reserves have fluctuated constantly, standing at $20 billion in June 2008 before declining to $12.58 billion in January 2011 and bouncing back to $23 billion at end-2012, according to VnEconomy.
Vietnam’s shifting to post a trade surplus of $328 million in the nine months through September, strong foreign direct and indirect investment, and sustainable inbound remittances have enabled the central bank to buying hard currency.
The State Bank of Vietnam’s head transactions office on October 11 lowered its buying price for the U.S. dollar by another 5 dong, indicating that it is now in a good position to intervene in the money market if needed.