Exchange Rate in Vietnam

Vietnam Exchange Rate | Economic News & Forecasts

Vietnam - Exchange Rate

Central Bank devalues dong, widens trading band

On 19 August, the State Bank of Vietnam (SBV) announced an adjustment to the average inter-bank VND/USD exchange rate, raising the rate from 21,673 VND/USD to 21,890 VND/USD, the equivalent of a 1.0% increase. The Bank also decided to widen the exchange rate trading band from +/-2.0% to +/-3.0%, spreading the floor and ceiling exchange rates to 21,233 and 22,547 VND per USD, respectively. The move follows two prior devaluations of the dong this year of 1.0 percentage points each in January and May.

The move to devalue the currency comes in response to the depreciation of the Chinese yuan earlier this month, and will help support Vietnam’s external position as currencies in the region lose ground against the greenback. A weaker dong also means the SBV is able to use less resources in order to maintain the exchange rate as strengthened expectations of the Fed’s interest rate hike later this year put downward pressure on the currency.

The decision to widen the dong’s trading band follows a similar action on 12 August to expand the band from +/-1.0% to +/-2.0% around the previous midpoint of 21,673 VND/USD. The SBV had defended that decision stating that a stronger recovery in the U.S. and uncertainty in Europe over the Greek debt fallout, as well as other external factors, required a more flexible trading band.

The list of adjustments made by the SBV in August is indicative of a host of pressures affecting Asian forex markets. With these changes, the SBV hopes to safeguard the dong against fluctuation in domestic and international markets, and maintain the competitiveness of Vietnam’s exporters.

FocusEconomics Consensus Forecast panellists expect the dong to trade at 21,812 per USD at the end of this year. For 2016, the panel projects the dong to trade at 22,108 per USD.

Vietnam - Exchange Rate Data

2013  2014  2015  2016  2017  
Exchange Rate (vs USD)21,095  21,388  22,485  22,771  22,710  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

Vietnam Exchange Rate Chart


Vietnam Exchange Rate
Note: Dong (VND) per U.S. dollar
Source: Thomson Reuters.

Vietnam Facts

ValueChangeDate
Bond Yield4.80-0.13 %Mar 11
Exchange Rate23,1990.01 %Mar 11
Stock Market9850.15 %Mar 11

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Start Your Free Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form