Drooping Vietnam Dong Devalued
by: Trace Mayer November 25, 2009 |VMN / VNM
On 26 November 2009 the State Bank of Vietnam devalued the dong by about 5%. This is the third instance of currency devaluation in two years. The FRN$ is likewise being devalued against gold.
A few weeks ago I observed that those buying gold in Vietnam are paying a premium and that:
Gold is money and is reasserting itself as currency in Vietnam. After 18 months of failed policies the helpless government has retreated from the import restrictions because the market is more powerful than governments.
Bloomberg reported,
The State Bank of Vietnam set a dong reference rate for tomorrow that is 5.2 percent lower, at 17,961 per dollar, compared with 17,034 today, it said in a statement on its Web site. Policy makers narrowed the dong’s daily trading band to 3 percent, from 5 percent, effective tomorrow, and increased the benchmark interest rate for the first time since January, to 8 percent.
by: Trace Mayer November 25, 2009 |VMN / VNM
On 26 November 2009 the State Bank of Vietnam devalued the dong by about 5%. This is the third instance of currency devaluation in two years. The FRN$ is likewise being devalued against gold.
A few weeks ago I observed that those buying gold in Vietnam are paying a premium and that:
Gold is money and is reasserting itself as currency in Vietnam. After 18 months of failed policies the helpless government has retreated from the import restrictions because the market is more powerful than governments.
Bloomberg reported,
The State Bank of Vietnam set a dong reference rate for tomorrow that is 5.2 percent lower, at 17,961 per dollar, compared with 17,034 today, it said in a statement on its Web site. Policy makers narrowed the dong’s daily trading band to 3 percent, from 5 percent, effective tomorrow, and increased the benchmark interest rate for the first time since January, to 8 percent.