ORIGINAL SPARE PARTS

HA NOI — The State Bank of Viet Nam denied rumours yesterday that it would widen the daily trading band of the US dollar-Viet Nam dong exchange rate, urging the public to stay calm against the sudden surges in the price of the greenback on black market.

Yesterday, one US dollar was going for about VND19,020-19,160 on the street, an increase of VND250 over Friday, with the black market being driven by whispers that the State Bank was considering a wider trading band for the currency.

“The daily trading band remains,” said State Bank’s Governor Nguyen Van Giau. “The central bank continues to pursue a stable and flexible exchange rate policy.”

Since the beginning of the year, the dollar has gained over 5 per cent against the dong on the official market. In September, the interbank rate was VND16,976 per dollar; on October 10, it was VND17,000. Yesterday, the rate reached an all-time high of VND17,021.

The gradual increase in the rate last month was viewed as reasonable however, as it narrowed the gap between the official and black-market rates, while encouraging exports.

Meanwhile, most commercial banks have been tending to keep exchange rates at the upper limit of the daily trading band at VND17,872 per dollar.

On its website, the central bank said it would keep a close watch on the forex market and would step in and apply suitable measures to manage the market if needed. — VNS