Vietnam will lower the mid-point rate for trading its currency on the interbank market by 1 percent on Thursday to support exports, the key driver of the economy, the central bank said.
The move will lower the dong to 21,246 per dollar. The State Bank of Vietnam (SBV) announced the change in a late-night posting on its website on Wednesday.
“In the context inflation is being kept at a low level, in order to support exports in the last six months, the State Bank proactively adjusts the exchange rate,” the central bank said.
Dollar/dong transactions can move in a band of plus or minus 1 percent around a midpoint rate set daily by the central bank. With the new midpoint taking effect on Thursday, that means within a range of 21,034 to 21,458 dong per dollar.
The central bank has kept the mid-point rate unchanged at 21,036 since June 28 last year.
The biggest devaluation in recent years came when the value of the inconvertible dong was lowered on Feb 11, 2011 by 8.5 percent against the dollar, to counter a widening gap between official and black market rates.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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