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Ever wondered how your money converts in another country? Exchange rates tell us how much one currency is worth compared to another.
Knowing the exchange rates and fees can help you make better choices and save money when exchanging currencies or sending money abroad.
When buying foreign currency with Vietnamese dong (VND), refer to the Bank's sell rate. For example, if USD1 = VND26,355, multiply the USD amount by the rate. For USD100, the calculation is: 100 × 26,355 = VND2,635,500.
When selling foreign currency to convert to VND, refer to the Bank's buy rate. For example, if you have 100USD, multiply the USD amount by the rate: USD100 x 26,217 = VND26,217,000.
Keep in mind that the buy and sell rates are different, so the amount you receive may vary depending on the transaction.
Some inflation is good for an economy – it shows there's an increasing demand. But too much inflation can be a problem, as goods and services become less affordable.
Central banks aim to maintain inflation stability when setting interest rates. If inflation is rising too fast, they may increase interest rates. This can make it more expensive to borrow and more rewarding to save, which reduces demand and slows inflation.
Higher interest rates can increase a currency's value by attracting foreign investment. This means more money coming into a country or region and higher demand for the local currency.
But if inflation is below its target level, a central bank may look to reduce its interest rates. Lowering rates makes it cheaper to borrow and less rewarding to save, which encourages people to spend. The increase in demand can push inflation higher.
Learn more: Bank interest rate: What it is, and how to calculate it
A country or region's trading relationship with the rest of the world can also affect its local currency. If it exports more than it imports, it's known as a trade surplus. It will typically have a stronger currency than those with trade deficits. When demand for a country's exports go up, demand for its local currency will also go up. This is because goods and services will be bought with that local currency.
Market expectations significantly influence exchange rate fluctuations. These expectations are shaped by the factors discussed on this page, as well as additional elements, such as:
If you're an HSBC Vietnam customer, you can exchange foreign currency at any HSBC branch. You can also use our online banking or mobile app to check rates and convert money between your accounts. For cash exchanges, just bring your ID or passport and supporting documents to a branch.
Make easy global payments with the HSBC Vietnam app. Enjoy preferential fees and free domestic payments for HSBC Premier and Payroll Offers customers.
If you're not using HSBC or want more options, here are some other ways to exchange foreign currency:
Always check rates and fees before exchanging! And be sure to keep the receipt, as it may be needed later.
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