The National Bank of Vietnam, after its third adjustment to the dong this year, announced it would not alter the exchange rate again until 2016, reports Thanh Nien.
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Its most recent adjustment, announced earlier this month, devalued the dong by an additional 1%, following a 1% drop on Jan 6 and another 1% drop on May 7. The latest value adjustment has resulted in an exchange rate of VND21,890 (previously VND21,673) to USD$1 and a revision of the exchange rate variance from +/-1% to +/-3%.
The move is described as a competitive measure to make Vietnamese currency flexible to worldwide events, such as China further depreciating its currency or the US Federal Reserve raising interest rates. By doing so, the Vietnamese government aims to reinforce public confidence in a relatively stable economy.
[Top image via Bloomberg]
