Vietnamese dong creeps on dollar
08/01/2008 -- 11:24 AM
Ha Noi (VNA) – The Vietnamese dong has crept up on the US dollar since the trading band widened two weeks ago as part of measures to curb rising inflation. The exchange rate has fallen below 16,000 VND.
The currency has strengthened by as much as 28 VND per dollar per week on average, a significant move given that the dollar has for years been hovering above 16,000 VND.
On Jan. 7, the central bank announced a daily inter-bank exchanged rate of 16,107 VND. Eximbank listed an exchange rate of 15,986 VND/15,992 against 16,018 VND/16,040 after SBV allowed more flexible exchange rates for the US dollar.
The exchange rate for the greenback was 16,030 dong at the close of 2007, one year ago. The currency, said it’s most volatile, was still within the narrow range of 15,970 and 16,230 throughout the year.
Compared to an exchange rate against the dollar of 16,287.5 on August 21, the weakest point in at least 14 years, the exchange at this time has fallen 1.85 percent.
With the dollar plunging against world currencies in recent months, the tight trading band has kept the dong artificially weakened with less liquidity in forex markets.-Enditem
(VNAgency)
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