Vietnam’s currency is on a floating peg that is managed by the State Bank of Vietnam. This means that the currency does not always behave as it might in other parts of the world. This section monitors Vietnam currency news including changes in monetary and fiscal policy, the exchange rate, and State Bank policies and objectives.

US dollar still at 25,450 dong level, more FX reserves needed

the-shiv May 13, 2024

US dollars were being sold for 25,484 Vietnamese dong Sunday at some banks. This is above the 25,450 mark at which the State Bank of Vietnam has intervened by spending foreign currency reserves in the past. On the black market, US dollars were even higher selling for 25,800 a piece.

Impacts of Vietnam’s US dollar intervention on trade with Japan, Korea

the-shiv May 6, 2024

The Japanese yen and the South Korean won are depreciating against the US dollar and subsequently are also depreciating against the Vietnamese dong, Tuoi Tre has reported. This is on the back of Vietnam trying to keep its currency from devaluing by issuing treasury bills and spending its foreign currency

UOB says Fed rate cut will see dong appreciate by year-end

the-shiv May 4, 2024

Singpore’s United Overseas Bank–or UOB–has said that it expects the dong to appreciate between now and the end of the year, The Investor is reporting. This is reflected in UOB’s Quarterly Global Outlook 2Q24 which suggests that a recovery in China will likely strengthen the local currency as well as

The Dong’s Wild Ride: Unpacked

the-shiv April 30, 2024

The day that Russia invaded Ukraine, on February 24, 2022, the Vietnamese dong was trading at 22,843 dong to one US dollar–it had barely moved since the start of the year. This was in line with much of the past decade in which the local currency had only depreciated marginally,

Bank of America expects dong to slide another 1 percent in 2024

the-shiv April 30, 2024

The Bank of America is expecting the Vietnamese dong to slide by another 1 percent by the end of the year, CNBC is reporting. According to the publication, the BofA made the assessment based on “Vietnam’s political instability following the second presidential resignation in two years as well as difficulty

The State Bank is both buying and selling treasuries at the same time

the-shiv April 18, 2024

On Wednesday the State Bank of Vietnam both bought VND 5,671.97 worth of treasuries from five local banks and sold another VND 5,500 billion to five Vietnamese banks. It’s not clear what the thinking is behind this but as far as keeping the exchange rate where it is, these two

Vietnam’s foreign reserves on table if VND decline continues: SBV Deputy Governor

the-shiv April 4, 2024

Banks were selling US dollars for upwards of 25,000 Vietnamese dong a piece on Thursday, the most a single US dollar has been able to buy ever, according to VN Express. In response, the Deputy Governor of the State Bank of Vietnam (SBV), Dao Minh Tu, has said that the

Importers, exporters disagree over Vietnam’s currency strategy

the-shiv March 16, 2024

A 1 percent increase in the value of the US dollar could equate to a US$12.1 million annual loss for Vietnam ‘s national carrier, according to Dang Ngoc Hoa, chairman of Vietnam Airlines, and reported by VN Express. The chairman of PetroVietnam, Le Manh Hung, is also advocating for keeping

Vietnam C.bank starts issuing T-bills to reduce pressure on dong

the-shiv March 12, 2024

The State Bank of Vietnam issued VND 14.999 trillion or US$609 million yesterday in a renewed attempt to halt the devaluation of the local currency, The Investor is reporting. Key takeaways: Overnight loans account for 90 percent of transactions and were attracting an interest rate of 1.17 percent on March

This opinion piece re: US dollar, gold prices in Vietnam

the-shiv March 11, 2024

Penned by Nguyen Huu Huan, an economist at the Ho Chi Minh City University of Economics, this piece in The Investor makes several points about US dollar and gold prices in Vietnam. These include: Gold fever is being driven by a lack of other investment options; The rising price of