Central bank devalues Vietnamese dong by 1%
The State Bank of Vietnam (SBV) has devalued the local currency by 1% in a move to deal with adverse effects on the international market.
Photo for Illustration (Photo: Thai Thien). |
The exchange rate adjustment, effective from May 7, will raise the value of a US dollar from VND21,458 to VND21,673.
The US dollar is allowed to trade by as much as 1% on either side of the central bank’s reference rate.
Earlier in January the Vietnamese dong was also weakened by 1%, meaning that there will be no room for more rate changes in 2015 if the SBV adheres to its pledge to adjust the exchange rate by no more than 2%.
The central bank says the exchange rate has followed an upward trend recently due to psychological factors and market expectations but still comes within the central bank’s trading band.
Yesterday the US dollar was listed at VND21,620 and VND21,670 for buying and selling at Vietcombank, nearing the ceiling of VND21,673 allowed by the central bank.
The SBV says it will continue to pursue a combination of policy instruments to keep the exchange rate and the currency market stable following the latest adjustment.
It will also closely monitor developments on the domestic and international markets to introduce appropriate measures.
(Source: nhandan.org.vn)