HÀ NỘI — The State Bank of Vietnam (SBV) will continually issue new bills to withdraw cash from the banking system in the context that liquidity is abundant and interbank interest rates remain low, analysts forecast. This will stimulate dollar speculation and put pressure on the foreign exchange rate. Three scenariosKBSV’s analysts have outlined three scenarios for the SBV’s bill issue, corresponding to different foreign exchange rate zones. Nevertheless, Hà acknowledged the intricacy of the SBV's task, given the intricate relationship between interest rates and foreign exchange rates. On October 19, the dollar rate at commercial banks saw a significant surge, notably exceeding the VNĐ24,700 threshold.

Source: Viet Nam News October 23, 2023 09:34 UTC