The dong remained fairly stable against the U.S. dollar in 2019, contrary to the forecast that it would shed its value by 2-3%.

The sudden depreciation of Chinese yuan against the US dollar brings more difficulties to Viet Nam’s yarn industry, according to Viet Nam Textile and Apparel Association.

China’s yuan (renminbi) has remained above the sensitive level of seven to the US currency for the last three days, hinting that trade friction between the US and China is entering a dangerous phase.

The State Bank of Vietnam (SBV) has reported a foreign currency reserve amount of 68 billion USD in the first half of 2019, the highest level so far.

The Vietnamese dong has gained some strength against the US dollar in the past month, helped by abundant domestic supply and favourable global conditions.

VietNamNet Bridge - While the dollar appreciation brings great benefits to exporters and enterprises which have earnings in dollars, it has caused importers and manufacturing enterprises to suffer.

 The exchange rate between the dong and the US dollar will be stable and end at VND22,900 per US dollar by the end of 2018, predicts Ngo Dang Khoa, head of Global Markets, HSBC Bank Viet Nam.

 The State Bank of Viet Nam weakened the Vietnamese dong by 1 per cent, raising the US$-VND daily reference rate from VND21,246 to VND21,458.

 VietNamNet Bridge – The State Bank of Vietnam will continue to pursue its current dong/dollar exchange rate stabilization policy in 2015. Vietnamese dong depreciation, if it occurs, will not be higher than two percent.

 VietNamNet Bridge – The State Bank of Vietnam (SBV) has sold dollars to commercial banks in an effort to stabilize the dong/dollar exchange rate amid the year-end dollar demand increase.

Businesses have asked banks to give more unsecured loans based on business credit rating in a move to unclog the credit sources.

 VietNamNet Bridge – The dollar price has been falling for one week, despite the State Bank of Vietnam’s move to devaluate the dong by one percent one month ago.

VietNamNet Bridge - Financial institutions believe the dong will depreciate further in the last months of the year after losing one percent of value since mid-June.

 VietNamNet Bridge – The Vietnam dong is believed to be undervalued by 39 percent if compared with the US dollar.

 VietNamNet Bridge – If the State Bank of Vietnam had not made the timely intervention, the dollar prices would have tumbled more dramatically in recent days.

 VietNamNet Bridge – Vietnam considers devaluating the dong in an effort to boost the export after a long period of keeping the dong/dollar exchange rate stable.

VietNamNet Bridge - The dollar price has been increasing steadily for a long time, though economists and state officials affirmed before that the price rise was just temporary.

 VietNamNet Bridge – The dollar prices quoted by commercial banks since the beginning of June have always been hitting the ceiling levels. Is it now the time to adjust the dong/dollar exchange rate?

The State Bank of Vietnam said it will slash the deposit dollar interest rates. However, it would keep cautious steps when deciding when and how much to slash the interest rates in order to ensure the liquidity for the banking system.