Tran Ngoc Bau, CEO of Ho Chi Minh City-based financial data provider WiGroup, has said a devaluing Vietnamese dong is only temporary and that it will bounce back, The Investor is reporting. Tran says remittances, a surplus in Vietnam’s balance of payments, and an end to interest rate hikes in the US likely soon, among other things, will ease pressure on the dong.
Note: The dong is on a floating peg against the US dollar with a trading band set by the State Bank of Vietnam (SBV). The SBV has allowed the dong to slowly devalue since May, with a very strong aversion to raising interest rates in Vietnam at the moment amid slowing economic growth.