Vietnam to keep forex rate stable: central bank

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Vietnam's central bank reaffirmed on Friday that it will keep the dollar/dong exchange rate stable and stood ready to intervene to ensure a stable market, despite recent changes on the foreign exchange markets.

Rumours which shook Vietnam's markets on Thursday had made the exchange rate volatile, the State Bank of Vietnam said in a statement.

The country's main share index fell 3.7 percent on Thursday, its biggest one-day drop in six months, as speculation of a hike in petrol prices and news that a bank executive had been detained added to negative sentiment.

The dong fell to 21,060/21,100 per dollar on the unofficial market on Thursday and stood unchanged on Friday, or 0.6 percent down from Monday when Vietnam's markets reopened after a long holiday to mark the lunar new year.

On Tuesday, the central bank said it was not considering any plans to devalue the dong against the dollar even though financial experts have proposed the currency be devalued by 2-4 percent to support exports.

Vietnam stocks rose nearly 1 percent to 481.10 points by late morning on Friday after the central bank issued the statement and on news that the government has approved a masterplan to boost the economy by 2020.

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