The State Bank of Vietnam (SBV) has said it has made efforts to shore up foreign exchange reserves by buying up foreign currencies after it was forced to sell a large volume amid growing pressure on exchange rates.

Market liquidity is now smooth and the economy’s legitimate foreign currency needs are fully met, so the SBV no longer needs to use its reserves to intervene and stabilize the market, said Mr. Dao Xuan Tuan, Director of the SBV’s Department of Foreign Exchange Management.

The supply of foreign currencies has increased and the central bank has bought foreign currencies for its foreign exchange reserves, he said.

Credit institutions also reported that money transfers from abroad for purposes such as study, tourism, family support, or living costs fell sharply in November, by 40 per cent compared to October.

The amount of foreign currencies sold by credit institutions to individuals also fell remarkably in November, by 57 per cent against October.

Meanwhile, the amount of foreign currencies purchased by credit institutions rose sharply, by 69 per cent month-on-month.

This means that pressure on foreign currencies has eased, ensuring a balance in supply and demand.