Vietnam widens VND / USD trading band to 3%

Vietnamese central bank decided to widen the trading band for interbank Vietnamese dong/U.S. dollar ( VND/USD) transactions from 2 percent to 3 percent from Wednesday.

Meanwhile, the State Bank of Vietnam (SBV), the country's central bank, also announced it would lift the inter-bank average exchange rate up by 1 percent, from 21,673 VND/USD to 21,890 VND/ USD which is applicable from Wednesday, the SBV said.

This is the fourth adjustment this year and the second since last Wednesday, which allowed the VND/USD trading band to move from 1 percent to 2 percent.

The adjustment was made to"actively respond to the recent adjustments of the Chinese yuan,"the SBV said on its website.

Along with the adjustments of the Chinese yuan, the fears over possible negative impacts of the rate increase of the U.S. Federal Reserve System also attributed to the SBV's decision on Wednesday, it said, adding that the move aims to ensure competitiveness of Vietnamese goods.

The SBV stands ready to sell foreign currency if necessary to stabilize forex market and forex rate, it said.