Photo: Dao Ngoc Thach
Vietnam's overall balance of payments registered a surplus of US$2.8 billion, even though its trade deficit reached $1.75 billion as of mid-March, according to the central bank.
The State Bank of Vietnam (SBV) also said it would keep the dollar/dong exchange rate within a 2-percent band this year to facilitate both exports and imports, according to a report on the Saigon Times news website Thursday.
The dong has eased 1.3 percent against the dollar this year on the interbank market, where the central bank allows dollar/dong transactions to move in a band of 1 percent around the mid-point set daily.
The trade deficit in Q1 played a role in weakening the dong, but the central bank still forecast a surplus in balance of payment for this year, according to Saigon Times.
It attributed the rise in dollar/dong rate in Q1 to the dollar’s upward trend against other currencies since the beginning of this year.
The central bank also ruled out further depreciating the dong, saying such a move would not substantially benefit the country's export but would increase the burden of foreign debts on the government as well as businesses.
The average dollar/dong exchange rate was listed at VND21,458 on the state bank’s website on Wednesday.