SBV Cuts Central Rate 5 VND to 25,561, Ending Three-Week Streak

Overview

The State Bank of Vietnam (SBV) reduced its central reference rate by 5 VND to 25,561 VND/USD on August 13, breaking a three-week consecutive increase that had pushed the rate to a record 25,566 VND/USD. The adjustment follows a meeting between Prime Minister Lê Minh Hưng and the central bank, signaling a shift toward active forex stabilization. This policy move directly impacts major listed banks, including BIDV (BID), Vietcombank (VCB), and VietinBank (CTG), which are sensitive to exchange-rate dynamics.

Key Facts

• The central reference rate was cut by 5 VND to 25,561 VND/USD on August 13, 2026.
• The rate had risen for three consecutive weeks, reaching a record 25,566 VND/USD the previous day.
• The adjustment came after a meeting between Prime Minister Lê Minh Hưng and the SBV on the morning of August 13.
• The SBV’s trading band allows commercial banks to transact USD within 24,281 - 26,839 VND/USD.
• On the interbank market, Vietcombank, VietinBank, and BIDV raised selling prices by 20-30 VND, trading around 26,270-26,300 VND/USD.
• The DXY index, measuring the dollar’s strength, was around 99.8 points, slightly lower than the previous session.
• MB Securities forecasts the rate to reach 26,800-27,000 VND/USD by end-2026, a 2-2.8% increase from the start of the year.

What Happened

The SBV announced a 5 VND reduction in the central reference rate, bringing it to 25,561 VND/USD, effectively halting a three-week upward trend that had set a record high. This move follows a directive from Prime Minister Lê Minh Hưng during a working session with the central bank and credit institutions, where he emphasized the need for flexible exchange-rate management, coordinated monetary policy tools, and market intervention to stabilize foreign exchange.

According to Lê Anh Tuấn, CEO of Dragon Capital, the SBV has managed the forex market well despite a negative trade balance, and he anticipates the central bank will increase foreign reserves in the coming period. The central rate, which serves as a benchmark for commercial banks, has risen 1.8% since the start of the year. On the interbank market, major banks like Vietcombank, VietinBank, and BIDV adjusted their buying and selling rates in opposite directions, with selling prices up 20-30 VND to around 26,270-26,300 VND/USD, while buying prices fluctuated more widely.

Market Context

On August 14, 2026, BID closed at 38,000 VND (-1.80%), CTG at 32,000 VND (-1.56%), and VCB at 59,000 VND (-0.67%) on the HOSE. The rate cut comes amid a broader trend of dollar strength, though the DXY index has eased slightly. The banking sector, which is highly sensitive to currency movements, has been under pressure from rising USD/VND rates, affecting import-heavy industries and potentially impacting bank balance sheets. The SBV’s intervention is seen as a stabilizing signal, but analysts at MB Securities note that pressure on the exchange rate remains, with a forecast of 26,800-27,000 VND/USD by year-end.

Strategic Significance

For long-term investors, the SBV’s decision to cut the central rate signals a more proactive approach to managing the forex market, which could reduce volatility and support macroeconomic stability. This is particularly relevant for banks like BID, VCB, and CTG, which are exposed to currency fluctuations through their foreign-currency lending and trading operations. A stable exchange rate could improve investor confidence, attract foreign capital, and support the banking sector’s profitability. However, the forecast of further depreciation suggests that the SBV may need to continue intervening, which could impact foreign reserves and monetary policy flexibility.

What to Watch

• Subsequent daily central rate announcements to see if the cut is a one-off or part of a sustained trend.
• The SBV’s foreign reserve levels in the coming months, as hinted by Dragon Capital’s CEO.
• The DXY index movement and its impact on USD/VND pressure.
• Q3 earnings reports from BID, VCB, and CTG for any forex-related gains or losses.
• Any further policy statements from the Prime Minister or SBV regarding exchange-rate management.