Vietnam’s foreign reserves have surged 250% since 2015 (Photo: Vnmedia)

Mr. Hung did not mention the exact figure, but local media quoted a source who said SBV has bought 16 billion USD so far this year, that its foreign reserves to an estimated 75 billion USD. The SBV reported that foreign reserves totalled 73 billion USD at the end of October.

Sufficient foreign reserves are needed to protect Vietnam from adverse effects caused by external factors, Mr. Hung said. According to him, the foreign exchange market has been stable and the liquidity of the market has been good throughout the year, even though the trade war sent the Chinese yuan to its weakest level against the US dollar in 11 years.

Experts attribute the stability to SBV’s flexible central rate management mechanism, foreign currency supply from exports, foreign investment, official development assistance, tourism, and remittances.