Fed hikes show limited impact on overseas remittancesOver the past several years, the foreign remittance inflows sent by over fours million Vietnamese workers living from 187 countries and territories have been steady, despite the Fed’ raising interest rates three times in 2017. The total overseas remittances pouring into Ho Chi Minh City in December are anticipated to reach $650 million, equivalent to that of November.”Consequently, “Ho Chi Minh City would welcome a total $5.2 billion by the end of 2017, which would be 4.5 per cent up against 2016,” Minh added. Over the course of 2017, Vietnam’s foreign-exchange reserves hit an all-time high of $46 billion thanks to the latest addition of $8 billion. Previously, the Fed confirmed sticking with the plan of tightening currency for 2018 with another three increases in the base interest rate, picking up the current annual rate of 1.25-1.5 per cent. Huynh Trung Minh, a Vietnamese financial specialist, exemplified the frequent transfers from about four million Vietnamese overseas workers in the US, France, and Australia, as well as the favourable policy framework that could accelerate overseas remittance inflows.

Source: VietNamNet News December 27, 2017 08:37 UTC