The domestic market remained stable on March 16 after the US Federal Reserve (Fed) raised its interest rates for the second time in three months, with the USD/VND exchange rate declining.
The State Bank reduced the daily reference exchange rate to 22,252 VND per USD, down from 22,262 VND on March 15.
Most commercial banks adjusted their listed rates down by 40-60 VND.
The gold prices, after going up by 100,000 VND-200,000 VND per tael earlier on the day, stabilised in mid-day and even dropped slightly at the end of the day.
In an interview with Vietnam News Agency, banking expert Nguyen Tri Hieu said the market was not affected much by the Fed’s move, as it is anticipated.
He noted, however, that further rises in Fed’s interest will put pressure on the exchange rate, as rising interest rate of USD savings in foreign countries may prompt a flow of USD abroad.
The expert suggested that the State Bank revise its policy on USD savings, adding that the interest rates of VND savings may also be raised.
He urged cautious moves to ensure credit growth in such circumstances.