Any possible interest rate hike by the U.S. Federal Reserve by year-end won't prompt Viet Nam's central bank to alter its foreign exchange rate policy, the State Bank of Viet Nam (SBV) said on Sunday.

Viet Nam has devalued its currency via 3 official exchange rate cuts since Jan. 7, each by 1%, and also widened the dollar/dong trading band twice last month to 3%, from 1 % before Aug. 12.

"The Vietnamese dong's exchange rate has sufficiently large ground to stay flexible against any adverse market changes at home and abroad not only between now and the end of 2015 but also in the first months of 2016," the SBV said in a statement.

Dollars are traded at a bank in Viet Nam. Tuoi Tre

"Any Fed rate hike will not influence the State Bank's policy on stabilising the exchange rate," the statement said.

The central bank also reiterated it stood ready to ensure exchange rate balance by selling foreign currencies into the market when necessary.

The dong has lost nearly 5% against the U.S. dollar so far this year on the interbank market.

(Source: tuoitrenews)