Vietnam Forex Reserves Soar to $48b

Vietnam’s foreign currency reserves hit approximately $48 billion thanks to the country’s stable macroeconomic conditions and strong influx of exports, foreign direct investments and remittances, according to State Bank of Vietnam Governor Le Minh Hung, VNA reported. It meant that the SBV has brought in another $3 billion worth of hard currencies over the past month. Previously, Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by $7 billion in 11 months to bring the sum to a record high of $45 billion. The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. A few years ago, the exchange rate usually fluctuated widely towards the year-end due to seasonal factors. In particular, the USD/VND rate has undergone little change, although the US Federal Reserve raised its benchmark interest rates by 0.25 percentage points for the third time, effective December 14.