Domestic USD increases significantly compared to the world

USD/VND exchange rate increased by 1.9%

In August, the financial market fluctuated strongly. The foreign exchange market was one of the prominent “hot spots” where the USD/VND exchange rate increased sharply, far exceeding the 24,000 VND/USD mark, and at one point almost successfully conquered the 24,500 VND/USD mark.

In the last two days of August, the exchange rate cooled down a bit, but overall for the month, the USD still increased strongly.

Orient Commercial Joint Stock Bank (OCB ) is the unit that witnessed the USD exchange rate with the strongest growth rate and the highest selling price in the market. At the end of August, the exchange rate at OCB temporarily stopped at 23,909 VND/USD - 24,379 VND/USD, an increase of 446 VND/USD, equivalent to 1.9%.

Domestic USD increased skyrocketing compared to the world, picture 1 — In the domestic market, some places recorded the USD/VND exchange rate increasing by up to 1.9%, much higher than the 1.4% of the USD in the world market. Illustrative photo

The USD/VND exchange rate at Vietnam Export Import Commercial Joint Stock Bank (Eximbank) "closed" August at: 23,800 VND/USD - 24,300 VND/USD, an increase of 450 VND/USD, equivalent to 1.9%.

Vietnam Technological and Commercial Joint Stock Bank ( Techcombank ) listed the USD at 23,915 VND/USD - 24,260 VND/USD in the last trading session of August, an increase of 395 VND/USD, equivalent to 1.7%.

At state-owned banks, the exchange rate increased at a slightly slower rate.

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) "fixed" the USD/VND exchange rate at: 23,870 VND/USD - 24,290 VND/USD, up 385 VND/USD, equivalent to 1.6%. The increase rate of 1.6% also occurred at Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank). On the last day of August, the exchange rate at Vietcombank increased by 385 VND/USD to 23,900 VND/USD - 24,240 VND/USD.

The US dollar on the world market increased by 1.4%

The USD/VND exchange rate increased by 1.9% in just one month. Meanwhile, the greenback's growth momentum in the world market was much lower, reaching 1.4%. Specifically, in August, the US dollar index increased by 1.4%. The dollar's rise was fueled by expectations that interest rates would stay high for longer, but eased this week due to fleeting signs of a slowdown in US spending and hiring.

As a result, just this week, the greenback has shown a clear cooling trend with a decrease of 0.8%.

The Commerce Department on Wednesday revised down its second-quarter U.S. growth estimate to 2.1% from an estimated 2.4%. U.S. payrolls data is due Friday, and secondary figures this week such as job openings and private payrolls have suggested the labor market may be losing momentum.

“The dollar’s volatility was driven on the one hand by weak US second-tier jobs data,” said Chris Turner, head of global markets and head of regional research for the UK & CEE.

Despite a strong August, the greenback’s future is not looking good. In a recent report, the Mises Institute said that BRICS (the major emerging economies – Brazil, Russia, India, China and South Africa) will “break” the dollar and usher in a comeback for gold.

The US-led West will soon see the end of the dollar's preeminence in international trade, and all fiat currencies will follow, writes Patrick Barron on behalf of the Mises Institute.

Barron's said the recent BRICS summit in Johannesburg, South Africa, included “an agreement on the first step toward establishing an alternative commodity-based international trade settlement system, which will certainly include gold.”

“While the coming shift might be seen as a shift between Western democracies and the BRICS nations, the real battle is one of ideas – between Keynesian economics and gold,” he writes. “The winner will be gold.”

He pointed out that the devaluation of the traditional dollar “has reduced its purchasing power over gold by 98% since 1971,” and said that sanctions against Russia following the Ukraine conflict, the dollar-based SWIFT interbank payment system, had accelerated the transition to an alternative system.

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