USD/VND exchange rate increased by 1.9%
In August, the financial market fluctuated strongly. The foreign exchange market was one of the prominent “hot spots” where the USD/VND exchange rate increased sharply, far exceeding the 24,000 VND/USD mark, and at one point almost successfully conquered the 24,500 VND/USD mark.
In the last two days of August, the exchange rate cooled down a bit, but overall for the month, the USD still increased strongly.
Orient Commercial Joint Stock Bank (OCB) is the unit that witnessed the fastest increase in USD exchange rate and the highest selling price in the market. At the end of August, the exchange rate at OCB was temporarily at 23,909 VND/USD - 24,379 VND/USD, an increase of 446 VND/USD, equivalent to 1.9%.
In the domestic market, some places recorded an increase of 1.9% in the USD/VND exchange rate, much higher than the 1.4% of the USD in the world market. Illustrative photo
The USD/VND exchange rate at Vietnam Export Import Commercial Joint Stock Bank (Eximbank) “closed” August at: 23,800 VND/USD – 24,300 VND/USD, up 450 VND/USD, equivalent to 1.9%.
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) listed the USD at 23,915 VND/USD - 24,260 VND/USD in the last trading session of August, up 395 VND/USD, equivalent to 1.7%.
At state-owned banks, the exchange rate increased at a slightly slower rate.
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) "fixed" the USD/VND exchange rate at: 23,870 VND/USD - 24,290 VND/USD, up 385 VND/USD, equivalent to 1.6%. The increase rate of 1.6% also occurred at Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank). On the last day of August, the exchange rate at Vietcombank increased by 385 VND/USD to 23,900 VND/USD - 24,240 VND/USD.
The US dollar on the world market increased by 1.4%
The USD/VND exchange rate increased by 1.9% after only 1 month. Meanwhile, the greenback's growth momentum in the world market was much lower, reaching 1.4%. Specifically, in August, the US dollar index increased by 1.4%. The dollar's increase was fueled by expectations that interest rates would stay high for longer, but eased this week due to fleeting signs of slowing US spending and hiring.
As a result, just this week, the greenback has shown a clear cooling trend with a decrease of 0.8%.
The Commerce Department on Wednesday revised down its second-quarter U.S. growth estimate to 2.1% from an earlier estimate of 2.4%. U.S. payrolls data is due out Friday, and secondary data this week such as job openings and private payrolls have suggested the labor market may be losing steam.
“The dollar’s volatility was driven on the one hand by weak US second-tier jobs data,” said Chris Turner, head of global markets and head of regional research for UK & CEE.
Despite a strong August, the greenback’s future is not looking good. In a recent report, the Mises Institute said that BRICS (the major emerging economies – Brazil, Russia, India, China and South Africa) will “break” the dollar and usher in a comeback for gold.
The US-led West will soon see the end of the dollar's preeminence in international trade, and all fiat currencies will follow, writes Patrick Barron on behalf of the Mises Institute.
The recent BRICS summit in Johannesburg, South Africa, included “an agreement on a first step toward establishing an alternative commodity-based international trade settlement system, which will certainly include gold,” Barron said.
“While the coming shift may be seen as a shift between Western democracies and the BRICS nations, the real battle is one of ideas – between Keynesian economics and gold,” he wrote. “The winner will be gold.”
He pointed out that the devaluation of the traditional dollar “has reduced its purchasing power over gold by 98% since 1971,” and said that sanctions against Russia following the Ukraine conflict, the dollar-based SWIFT interbank payment system, have accelerated the transition to an alternative system.
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