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 ‘recovery momentum in the external trade and manufacturing sectors’.

For some background, the Vietnamese dong is on a managed peg. Each day the State Bank of Vietnam sets a base rate and financial institutions are permitted to trade the local currency up to 5 percent on either side. Managing this peg, however, has proved challenging over the last year or two and this has at times led to erratic fluctuations in the currency.

For more information see: The Dong’s Wild Ride: Unpacked 2024

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