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 gold and US dollars will likely encourage more illegal imports;
- This may lead to exchange rate pressure;
- Using bonds and bills to many the cash in the economy may lead to short term shocks;
- Moreover, this will all likely impact growth and inflation targets set at the beginning of the year.