Previously, the trading band had been plus or minus 0.5 percent. It was the third change of the exchange rate margin since 2002, when the band was first widened from 0.1 percent to 0.25 percent.

“The expansion aims to set up a more flexible exchange rate, helping commercial banks respond to market demands,” said Nguyen Ngoc Lan, deputy director of the State Bank’s foreign exchange management department.

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