Warning: Illegal string offset 'icon_style' in /home/globalcu/public_html/wp-content/plugins/simple-social-buttons/simple-social-buttons.php on line 123

Warning: Illegal string offset 'position' in /home/globalcu/public_html/wp-content/plugins/simple-social-buttons/simple-social-buttons.php on line 129
Vietnamese Dong Devaluations 2014-2016

Vietnamese Dong Devaluations 2014-2016

Welcome! Don’t forget to SUBSCRIBE to the FREE email newsletter Contents1 1st Devaluation – June 20142 2nd Devaluation – January 20153 3rd Devaluation – May 20154 4th Devaluation – August 20155 5th Devaluation – January 20166 Comments The Vietnamese Dong has been devalued five times from June 2014 to January 2016. It may be devalued further despite increased exports.  There are many that have speculated that the 46 cent rate showing on the screens is an indication of the future currency exchange rate, however, this has been proven to be false.  This article attempts to introduce new investors into the history of devaluation of the currency of Vietnam since early 2014 to the present day.  The purpose is to show that there has been no indication that their central bank plans to revalue the currency. 1st Devaluation – June 2014 Vietnam Devalues Dong First Time in a Year to Spur Exports Nguyen Dieu Tu Uyen June 19, 2014 — 1:59 AM MST Vietnam’s central bank devalued the dong for the first time in a year to help spur exports and vowed to ensure the stability of the currency as tension rises over a Chinese oil rig in disputed waters. The State Bank of Vietnam devalued the dong by weakening its reference rate for the currency by 1 percent to 21,246 per dollar, according to a statement on its website late yesterday. The change, effective today, allows the dong to fluctuate as much as 1 percent on either side of the central bank’s fixing. The dong fell 0.3 percent to 21,310 as of 3:41 p.m. in Hanoi and touched 21,360 earlier, prices from banks compiled by Bloomberg show. That was the biggest drop since Aug. 22. The currency was last devalued, also by 1 percent, on June 28, 2013. The central bank has said several times this year that it aims to weaken the dong as much as 2 percent in 2014. The benchmark VN Index of shares closed down 0.5 percent. “This move is expected, even though the fundamental macro situation is pretty stable,” said Lai Tat Ha, head of currency trading at Hanoi-based Vietnam Technological & Commercial Joint-Stock Bank. “It’s because the dong’s exchange rate had been anchored for a year and the government is seeking ways to boost exports.” Bonds Drop Vietnam’s policy makers are trying to bolster an economy that the World Bank estimates will grow 5.4 percent this year, slower than a government target of 5.8 percent. Last month’s violent protests following China’s placement of an oil rig in disputed waters halted production at foreign-owned factories and caused Chinese workers to flee. The government will closely monitor sectors that may be affected and take “suitable actions,” Deputy Prime Minister Nguyen Xuan Phuc said June 12. Government bonds fell. The benchmark five-year yield rose one basis point, or 0.1 percentage point, to 7.18 percent, according to a daily fixing from banks compiled by Bloomberg. The two-year yield climbed three basis points to 5.78 percent. “After adjusting the … Continue reading Vietnamese Dong Devaluations 2014-2016