19 Aug 2015
Vietnam Central Bank devalues Dong 1% - 3rd time in 2015
FXStreet (Mumbai) - The State Bank of Vietnam devalued its currency by 1% on Wednesday, mimicking moves by China last week, as both Asian nations fight to support their respective export sectors.
The central bank set the reference rate for the USD/VND rate at21,890 on Wednesday, up 0.99% on Tuesday's rate and this devaluation makes for the third count this year.
The State Bank of Vietnam also widened the trading band for the USD/VND to 3% per day, from 2% previously. The trading band was widened from 1% to 2% last week.
The central bank statement noted, “After the strong devaluation of the yuan, Vietnam’s domestic market sentiment is still very much concerned about the impact of the US Federal Reserve’s rate increase,”
“In order to proactively lead the market and pre-empt negative impacts of the possibility that the Fed will increase rates.”
The central bank set the reference rate for the USD/VND rate at21,890 on Wednesday, up 0.99% on Tuesday's rate and this devaluation makes for the third count this year.
The State Bank of Vietnam also widened the trading band for the USD/VND to 3% per day, from 2% previously. The trading band was widened from 1% to 2% last week.
The central bank statement noted, “After the strong devaluation of the yuan, Vietnam’s domestic market sentiment is still very much concerned about the impact of the US Federal Reserve’s rate increase,”
“In order to proactively lead the market and pre-empt negative impacts of the possibility that the Fed will increase rates.”