ANZ: Foreign exchange reserves of 35 billion USD are still low

Avatar of Nick John By Nick John Dec31,2023 #exchange #Foreign
ANZ: Foreign exchange reserves of 35 billion USD are still low 1
ANZ: Foreign exchange reserves of 35 billion USD are still low 1

The update report on Vietnam’s economic situation published on July 8 by ANZ Bank cited data showing that since the beginning of the year, thanks to the balance of payments surplus, the State Bank has increased by 10 billion USD, raising its forecast.

Thanks to the balance of payments surplus, the State Bank has increased a large amount of foreign exchange reserves since the beginning of 2014. Photo: Thanh Lan.

In ANZ’s opinion, although foreign exchange reserves have continuously improved in the last 3 years, the level of 35 billion USD is still low compared to other countries in the same region as well as if calculated by weekly/monthly imports.

ANZ: Foreign exchange reserves of 35 billion USD are still low

ANZ estimates Vietnam’s foreign exchange reserves at about 3.1 months of imports and is quite low compared to some economies┬ásuch as China (CH), Taiwan (TW), Philippines (PH), Singapore (SI)

In July, the State Bank increased the exchange rate between Vietnam Dong and US Dollar by 1%, from 21,036 VND to 21,246 VND.

The reason why the State Bank devalued VND by 1% this time was explained to be to support exports.

Experts at this bank wonder about the transparency in calculating foreign exchange reserves.

`Instead of clarifying the calculation method, the new concept of foreign exchange reserves makes it even more difficult to fully visualize the amount of foreign exchange transferred to Vietnam,` ANZ commented.

Regarding the general situation, this report from ANZ believes that Vietnam’s economy has passed the bottom and is in a period of slow but steady growth.

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