Topic: fed

Following a decision by the US Fed on September 22, the State Bank of Vietnam (SBV) joined the global trend and increased operating interest rates for VND from 4 per cent to 5 per cent. The move will not really have an impact, however, because no bank has borrowed capital from the central bank for many years.

The State Bank of Vietnam (SBV) adjusted the selling price for USD from VND23,400 to VND23,700 on the afternoon of September 7. It also stopped listing the intervention buying rate. According to analysts, the decision to raise the selling price is mainly a defensive measure against upcoming US Fed interest rate hikes.

United Overseas Bank sees better growth prospects for Vietnam in 2022 despite headwinds.

Commenting on the Vietnamese economy and the stock market before global events, Michael Kokalari, Chief Economist of VinaCapital, said that the Vietnamese economy is withstanding better against the current difficulties in the US and Europe than before, thanks to the policies the Government has put in place over the past decade to protect the country's economy from global economic storms.

The US Fed officially raising interest rates by 0.75 percentage points, the difference in the gold price between Vietnam and the world remaining high, and the supply of foreign currency not being favorable compared to previous years count among reasons why the VND may depreciate this year. The Vietcombank Securities Company (VCBS) believes the USD/VND exchange rate will increase in 2022 by within 2 per cent, while the Bao Viet Securities Company (BVSC) believes the State Bank of Vietnam still needs to control the exchange rate so that the VND does not depreciate too much.