USD/VND at Banks Hits 6-Month Low as Central Bank Cuts Reference Rate

Overview

The USD/VND exchange rate at Vietnamese commercial banks has fallen to its lowest level in six months, with banks selling dollars around 26,150 VND. The State Bank of Vietnam (SBV) lowered its daily reference rate to 25,603 VND, signaling reduced pressure on the domestic currency. This development affects major listed banks including Vietcombank (VCB), VietinBank (CTG), ACB, and Sacombank (STB).

Key Facts

• Banks sold USD at around 26,150 VND, down 70 VND from the previous day and about 400 VND lower than a month ago.
• The rate is the lowest since February, marking a six-month trough.
• Vietcombank quoted buying/selling at 25,770 - 26,150 VND; VietinBank at 25,777 - 26,157 VND.
• Private banks ACB and Sacombank listed selling rates around 26,130 VND.
• The SBV cut its central reference rate to 25,603 VND on the day.
• On the black market, rates were 25,700 VND buying and 26,000 VND selling, slightly below bank channels.
• Analysts at TPS Securities attribute the trend to persistently high deposit rates, which raise the opportunity cost of holding USD.

What Happened

The USD/VND exchange rate at Vietnamese banks has declined sharply, reaching its lowest point in six months. According to the article, each USD fell by 70 VND from the previous day’s close, and compared to a month ago, the rate has dropped by approximately 400 VND. State-owned banks like Vietcombank and VietinBank led the decline, while private lenders ACB and Sacombank followed suit.

The State Bank of Vietnam (SBV) contributed to the easing by lowering its daily reference rate to 25,603 VND. This move reflects a deliberate strategy to manage the dong’s stability, as noted by Associate Professor Dr. Nguyễn Quốc Anh from the University of Economics Hồ Chí Minh City. He highlighted that the SBV’s proactive management aims to create a buffer ahead of typically volatile months. The article also cites TPS Securities analysts, who argue that high deposit rates are reducing the incentive to hold dollars, thereby supporting the dong’s appreciation trend.

Market Context

The exchange rate movement comes amid a broader trend of dong stability. The article notes that while the central reference rate had previously hit a record high of 25,615 VND, bank and black-market rates were diverging. Now, with the reference rate cut, all channels are aligning downward. For banking stocks on HOSE, such as VCB (closing at 58,000 VND on 2026-09-08) and CTG (30,800 VND on 2026-09-07), a stable dong reduces currency risk and supports investor confidence. ACB and STB also trade on HOSE, with STB closing at 77,000 VND on 2026-09-08. The easing pressure on the dong is positive for the banking sector, as it reduces the need for SBV intervention and supports liquidity.

Strategic Significance

For long-term investors, the sustained decline in USD/VND signals a shift in the SBV’s policy stance, prioritizing stability over defending a high rate. This reduces the risk of sudden depreciation, which is crucial for banks with significant foreign-currency exposure. The high deposit rate environment, which the article identifies as a key support, may persist, encouraging dong holdings and reducing speculative demand for USD. This trend could enhance the profitability of banks like VCB and CTG, which benefit from stable funding costs and reduced currency-related provisions. However, the SBV’s active management suggests that the dong’s strength is policy-driven, and investors should monitor for any reversal if global conditions change.

What to Watch

• SBV’s future reference rate adjustments, especially ahead of seasonal volatility in the fourth quarter.
• Deposit rate trends; any cut could weaken the dong-supportive factor.
• FDI inflows and trade balance data for the coming months, as these are cited as supportive factors.
• Quarterly earnings reports from VCB, CTG, ACB, and STB for any impact on net interest margins or forex trading income.
• Any shift in the US Federal Reserve’s policy that could affect USD strength globally.