Overseas remittances to HCM City up 40% in 9 months. (Illustrative photo: Tran Viet/VNA)

Remittances stood at more than 2.3 billion USD in the third quarter, up 6.2% from Q2. Totals in Q2 were up 4.5% from Q1.

In Q3, money from Asia accounted for 53.1% of the total, up 19.8% from the previous quarter.

Economic, political, and social stability in Asia, together with Vietnam’s growing economic, cultural, and labor cooperation with foreign partners, will continue to boost remittances.

Nguyen Duc Lenh, Deputy Director of the SBV branch in HCM City, said the strong upward trend in overseas remittances is impressive, and it will have a positive impact on the economy, including the currency and foreign exchange markets. Remittances are an important source of foreign currency which helps to balance supply and demand in the foreign currency market, while supporting monetary policy, exchange rates, and the overall stability of the foreign exchange market.

This becomes more relevant considering the fluctuations in strong currencies worldwide and the rising inflation in certain countries, which creates pressure on exchange rates, interest rates, and domestic inflation rates, Lenh said.