The General Director of WiGroup, Tran Ngoc Bau, in an opinion piece in Doanh Nhan Vietnam, has said that exchange rate fluctuations at the start of the year are broadly the result of speculation. He says that:
- Rising world prices and a fear of missing out are pushing up gold market speculation;
- The demand for US dollar has increased on the back of more smuggled gold;
- People are losing faith that the US Federal Reserve will lower interest rates in the first half of the year; and
- Uncertainty around exchange rate fluctuations is encouraging hoarding.
Tran goes on to argue that intervention in the exchange rate is not necessarily necessary but that gold market reform should be a priority. However, he also notes that anything is possible.