CaliToday (30/10/2025): The State Bank of Vietnam (SBV) is moving decisively to curb speculation and stabilize the Dong, targeting illegal currency exchange points that are thriving amid market pressure.
Vietnam's central bank has issued an urgent directive calling for a "strict crackdown" on all unauthorized foreign currency exchange points, a clear signal of its intent to regain control over a market rattled by significant exchange rate volatility.
The State Bank of Vietnam (SBV) is responding to a widening gap between the official exchange rate pegged for commercial banks and the "black market" rate offered by illegal dealers. This move aims to stamp out speculation, stabilize the Vietnamese Dong (VND), and reinforce formal monetary channels.
The "Why": A Widening Gap and Speculation
The core of the problem lies in the mounting pressure on the VND. In recent weeks, the "unofficial" or "black market" rate often found at gold shops and small businesses—has diverged significantly from the official rate.
Official Rate: Regulated by the SBV, this is the rate used by licensed banks for businesses and individuals.
Black Market Rate: A "street rate" driven purely by supply and demand. When demand for USD surges (due to import needs, citizen savings, or speculative bets), this rate climbs rapidly.
This widening gap creates a powerful incentive for speculation. It encourages individuals and businesses to bypass the official banking system, hoarding dollars in anticipation of further currency depreciation. This, in turn, fuels more volatility in a self-perpetuating cycle, undermining the central bank's efforts to maintain macroeconomic stability.
The Mandate: A "Strict" and Swift Response
In its new directive, the SBV has explicitly ordered provincial authorities, market surveillance teams, and the police to coordinate and act decisively.
The order calls for:
Increased Inspections: Proactive and unannounced inspections of businesses suspected of conducting illegal foreign exchange transactions.
Zero Tolerance: The "strict handling" (xử lý nghiêm) clause implies that authorities will move beyond warnings to issue heavy fines and penalties.
Targeting the Disguised: The crackdown specifically targets businesses that use their official license (such as gold shops, or tiệm vàng, and travel agencies) as a cover for a full-scale illegal currency exchange operation.
Public Awareness: A push to remind citizens and businesses that all foreign exchange transactions must be conducted through licensed credit institutions.
Who is Being Targeted?
These "illegal points" are often an open secret, operating in plain sight in tourist-heavy areas of Hanoi's Old Quarter and Ho Chi Minh City's District 1. While they offer convenience, the SBV views them as a rogue element that destabilizes the formal economy.
By cracking down, the SBV is not just punishing violators; it is sending a strong message to the entire market. The goal is to cool down speculative fever and redirect the flow of foreign currency back into the official, regulated banking system, where it can be properly managed.
This move underscores the government's commitment to defending the VND and ensuring economic stability, a top priority as Vietnam navigates a complex global financial environment.