The State Bank of Vietnam has declared it is prepared to intervene as necessary to maintain stability in the foreign exchange market. It has also pledged to control inflation and address liquidity issues affecting the banking system.
Speaking at a quarterly briefing in Hanoi, Pham Chi Quang, head of the central bank's monetary policy department, stated that the Vietnamese Dong is under pressure from a "complex and volatile global situation combined with domestic challenges." "In this context, the central bank is managing the Dong exchange rate flexibly to help absorb external shocks, while coordinating with other monetary policies to stabilize the domestic foreign exchange market," he said.
So far this year, the Vietnamese Dong has shown little movement against the US dollar. However, the central bank has previously noted capital outflows, particularly driven by individuals purchasing gold as a hedge against potential currency depreciation and inflation.
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