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Vietnam has joined the "currency war"...
Vietnam devalues dong for second time in 2015 to boost exports
HANOI (May 7): The State Bank of Vietnam devalued the dong for the second time this year in a bid to maintain export competitiveness.
The central bank cut its reference rate 1 percent to 21,673 dong a dollar, effective Thursday, it said in a statement.
The Vietnamese currency is allowed to trade as much as 1 percent either side of the daily fixing, which was also lowered by 1 percent on Jan 7.
The exchange rate was adjusted “to proactively implement social-economic development targets”, the central bank said in the statement.
Governor Nguyen Van Binh said in December that the dong wouldn’t be weakened more than 2 percent in 2015.
“It’s not really a surprise because the currency has been trading at the top side of the band,” said Irene Cheung, a senior foreign-exchange strategist at Australia & New Zealand Banking Group in Singapore.
“The devaluation is not a bad thing because there is some deterioration in the trade balance.”
The dong was little changed at 21,652 a dollar as of 8:39am in Hanoi, according to data compiled by Bloomberg
http://www.theedgemarkets.com/sg/article...st-exports
Vietnam devalues dong for second time in 2015 to boost exports
HANOI (May 7): The State Bank of Vietnam devalued the dong for the second time this year in a bid to maintain export competitiveness.
The central bank cut its reference rate 1 percent to 21,673 dong a dollar, effective Thursday, it said in a statement.
The Vietnamese currency is allowed to trade as much as 1 percent either side of the daily fixing, which was also lowered by 1 percent on Jan 7.
The exchange rate was adjusted “to proactively implement social-economic development targets”, the central bank said in the statement.
Governor Nguyen Van Binh said in December that the dong wouldn’t be weakened more than 2 percent in 2015.
“It’s not really a surprise because the currency has been trading at the top side of the band,” said Irene Cheung, a senior foreign-exchange strategist at Australia & New Zealand Banking Group in Singapore.
“The devaluation is not a bad thing because there is some deterioration in the trade balance.”
The dong was little changed at 21,652 a dollar as of 8:39am in Hanoi, according to data compiled by Bloomberg
http://www.theedgemarkets.com/sg/article...st-exports
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