Vietnam Economic News

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#1
Vietnam has joined the "currency war"...

Vietnam devalues dong for second time in 2015 to boost exports

HANOI (May 7): The State Bank of Vietnam devalued the dong for the second time this year in a bid to maintain export competitiveness.

The central bank cut its reference rate 1 percent to 21,673 dong a dollar, effective Thursday, it said in a statement.

The Vietnamese currency is allowed to trade as much as 1 percent either side of the daily fixing, which was also lowered by 1 percent on Jan 7.

The exchange rate was adjusted “to proactively implement social-economic development targets”, the central bank said in the statement.

Governor Nguyen Van Binh said in December that the dong wouldn’t be weakened more than 2 percent in 2015.

“It’s not really a surprise because the currency has been trading at the top side of the band,” said Irene Cheung, a senior foreign-exchange strategist at Australia & New Zealand Banking Group in Singapore.

“The devaluation is not a bad thing because there is some deterioration in the trade balance.”

The dong was little changed at 21,652 a dollar as of 8:39am in Hanoi, according to data compiled by Bloomberg
http://www.theedgemarkets.com/sg/article...st-exports
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#2
Reminiscent of her Asean neighbors' own experience back in AFC1997

Vietnam mounts ‘unprecedented’ US$24 billion rescue for bank engulfed in giant fraud, documents show

The State Bank of Vietnam’s previously unreported cash injections into SCB amount to 5.6 per cent of the nation’s annual economic output, or about one-fourth of Vietnam’s foreign-exchange reserves.

Despite the official support, as at December SCB continued to face liquidity problems and at times struggled to settle payments on time when its customers transferred money to other banks, and to process payments via the country’s main clearing system, according to the new information. This affected customer “psychology” and created risks to the entire banking and financial system, it said.

https://www.businesstimes.com.sg/interna...ments-show
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