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Weak Dong Forces Vietnam Central Bank To Devalue Currency (Again)
Having put off the decision to devalue the Vietnamese currency in March, the Dong has pressured the weaker limit (1% trading band) of the reference rate ever since. This has led to Vietnam's central bank devaluing the dong reference rate to 21,673 (from 21,458) for the 2nd time this year. This is the softest the dong has ever been relative to king dollar, pushing them deeper into the currency wars.
- *VIETNAM CENTRAL BANK DEVALUES DONG
- *VIETNAM DEVALUES DONG REFERENCE RATE TO 21,673 PER DOLLAR
As Bloomberg notes,
The State Bank of Vietnam devalued the dong for the second time this year in a bid to spur exports and accelerate economic growth.
The central bank weakened its reference rate by 1 percent to 21,673 dong per dollar. The Vietnamese currency is allowed to trade as much as 1 percent either side of the daily fixing, which was also cut by 1 percent on Jan. 7.
Chart: Bloomberg
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Dong ! Where is Granpa's automobile ?
Leck.....big leck!!!!
"What's this?"
"Yak loin. Good to keep the yang up."
"Ain't notin' wrong with my yang."
- The Golden Child
If the Tylers aren't having a good laugh over this article I'll eat my hat. Weak dong. Freaking classic.
Did minister Long Wang release this info?
https://www.youtube.com/watch?v=Lydiy-VcB_4
In view of this development I have taken up a new and sophisticated position in the currency markets : long dong straddle with butterfly spread.
Bang da-ho has a weak dong, for the record.
i have resisted this article just for the dong comments....coulnt hold out any longer.....so in my post i have used the word dong and longer....sometimes u just cant help urself...
Y'all need to knock it off.
I personally know how humiliating it is to have a weak dong.
And will he start pumping to lift the dong?
(Came for the dong jokes...so shallow...not disappointed)
"... Long Wang ...?"
Hahaha. Classic kung fu of extra-ordinary magnitude.
Danger Seekers is one of my favs from that movie, also.
Is it possible the weak dong is related to a bloated and sagging middle section of the population?
Lake...big lake...
http://youtu.be/Fjh3TxOHCxE
That;s terrible, I feel bad for them, having a soft Dong.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
.... get out of here, Butterflying. You're not interested in a weak dong..... or ARE you?
"Wait...Did you jus say dong?"
ding! ding ! ding !..... er, I mean, dong ! dong ! dong !
"DONG"............."This is the softest the dong has ever been"........"pushing them deeper" C-mon!!!!!!!.....this is too easy......
<queue gong sound>
What's a happinen a hot stuff...
https://www.youtube.com/watch?v=KfTwTbXvR8Y
Does The Wookie like the dong?
Not this one, better ask the Obamanator! Faggot!
Currency wars are not the answer.
Right, stronger dong is the answer.
There's nothing worse than a weak dong.
Maybe they should try some kind of herbal remedy to put the zong back in their dong.
Yak loin. See above.
Everyone knows its the breadth that counts
Way to shove your Dong in Mr. Yellen's face.
She's drooling at the prospect of a surging dong.
The dong peaks right before the onset of the next dong downturn. So I heard, anyway.
Not for nothing, but that currency is doing a lot better than Euro and some other majors.
Na Trang Vietnam rocks, the Russians are gone, super cheap and safe. Communist sell weed and cheap whores are everywhere.
Short hop from Thailand where I live.
Me so horney....me love you long time.....me so horney..
https://www.youtube.com/watch?v=JEEWE7gcPw0
Exploting poor women for cheap sex is such a noble thing. F off. Typical pot head f**ktard.
When ever some dude pulls the "Exploting Poor Women" crap it means he is NOT getting any pussy and he is trapped in a sexless marriage.
So how is the shittty marrage you got trapped in going? Child support? And yet you still don't see it is the MAN who get's exploted by buying into feminist clap trap you spew. Go put your balls back in the jar and leave the bitches to me.
Show me a man who suddenly starts spewing feminist claptrap, I'll show you a man whose wife is threatening him with divorce.
Notice how white-knight and mangina downvoted you for speaking out the Truth.
Mangina (male feminist) are worse than feminist themselves IMO.
That's why the West have relationshit with their women.
Tipical hypocrite , drunk, cheating on his wife and calling everyone sinners while you stuff legal pain pills into your pie hole.
Deflation of the Dong, can lead to serious trouble!
Crap. Devaluing my currency tomorrow. But Dong will rise again!!
Yellen weakening the Dong...predicktable.
Devaluation in pursuit of merchantilism.
Bankrupting the lower classes to support corporate interests.
How boring inane and ineffective...
All over the whole fucking World these bankster/.gov assholes know how to do only one thing and that one thing doesn't work for shit when everyone is doing it all at the same time...
The name of Vietnam's currency just makes the adolescent jokes irressistable, no?
Pretty much, yeah.
Sum ting long with dong?
I'd change it were I them...
Maybe "ding" instead of "dong"...
I mean, "ding" still sounds Asian.
Just a thought.
m
And if the Dong is manipulated for too long, the currency will be pumped up and inflation may occur! Quantitive Teasing may be necessary to restore a strong Dong.
I don't get the headline. If the dong is weak, why does it need to be devalued further?
Because Keynesianism insanity: thinking that stealing everyone's wealth will recover the economy and make it more competitive.
Soon to be coming in your next Western developed countries.
Given this news, short dong!
This has to be the funniest thread I've seen yet. My sides are killing me.
best article title so far 2015
Let's all cry for the "poor exploted women" ......lol......
The only really happy folk are married women and single men.
H. L. Mencken
I think I just up voted nearly every single post...
I almost choked on my cocktail when I rad the title alone.
Thanks, fellow ZH'ers for the laughs...
Headline from a few years back "Dong strengthens on stimulus." The Dong must be every financial journalist's favorite currency.
It won't accomplish much.
Germany has better products on fire sale and the rest of Europe is too broke to pay themselves for doing each other's taxes and taking out each other's trash.
China is enthralled with it's equities presently and is trying to pull domestic surplus back into the faux consumption of pyramided RE.
Confucius say going long the dong leave you shriveled in the shorts
The long dong is burning my shorts.
Sigh ... everyone swings at the slow pitch.
I find that the dong usually needs stimulus to go up
Weak, soft, sagging dong? Perhaps the blue pills...
Explains why Vietnamese women go gaga over foreigners.
There is a stimulus pill for a weak dong!
The Vietnam central bank is another central bank to devalue its currency to counteract acute dollar shortage in FX trade, the only remedy possible for tens of central banks in the world which already drop their interest rates within last 12 months ( RBA few days ago) have to prevent collapse of their export driven economies.
Very few emphasize enough that core of the issue is utter collapse of demand for anything throughout the world due to massive over-leveraging of business of all sizes and households often in US dollars/Euro/Yen not in domestic currencies leaving CBs helpless.
People simply paying off their loans and obligations and have nothing left for consumption or investment. This catastrophic collapse of world demand (pointed out by Russia and China) for most goods including food and oil causes, continuing for almost a decade now, dramatic flight of capital resulting in recalling massive amounts of speculative capital back to US. Japan and Europe refused to accept returning yen and euro assets desperately seeking shelter in panic. They are trying to accomplish it via QEs and NegIRP. They are trying to erect barrier to capital inflows in order to avoid surging of their currencies and killing their economies, meaning reminder of industries capable to export since domestic demand is dead.
This leaves, commodity driven, emerging markets in conundrum. Their currency is weak vs. dollar but they do not trade that much with US to take any significant advantage (US is a significant exporter of commodities itself), but if currency of a country to which they sell is weaker than their currency vs. dollar, their sales collapse. And that’s really the case throughout the world. So they fight a currency war indirectly among themselves, through FX dollar, by collapsing their CB interest rates while facing collapse of their own currencies vs. dollar due to capital flight. All that against common wisdom, which would suggest rate hikes instead.
That’s why while 75% of world currencies lost to dollar, 75% of all worlds CBs lowered interest rate within in last 12 months and they keep lowering to out-export each other giving up on domestic demand and growth or even preventing any significant growth in first place to avoid their currency surge. Even China accepts much lower growth, to talk yuan down, and Russia lowered the interest rates twice while under FX attack and massive capital outflows, happy with rubel about half of its value 12 months ago.
To defend themselves many countries, also in the west, abandon FX market monopoly and set up huge currency swap lines, or join newly created independent of Washington and dollar, international financial institutions to limit this spiral of death. Ironically swap lines actually boosts dollar since in addition to non-US$ denominated capital flight into US$ assets, there is shortage of FX dollar funding since nobody needs to sell dollars to buy other currencies if they have swap lines, with “fixed” exchange rate, open. In strange ways globalization makes de-dollarization inevitable one way or another. Dollar strength is in part result of dollar shortage at FX but not because everybody wants dollars but because nobody needs it any more as intermediary in FX exchange because it is overpriced to its value. It is classical FX market failure, similar to that of 2008 when FED open massive swap lines with worlds CBs to squash dramatic raise in dollar
See post and my comment at:
http://www.zerohedge.com/news/2015-03-08/global-dollar-funding-shortage-...
But why? What’s going on?
The general answer is that national economies and sovereign states (with few exception) are illusions. Their domestic markets are illusions, their economic and social policies are illusions maintained for domestic political audience. Global integration has been accomplished. Only global economy exists now. And unified global capital rules the world.
Production is distributed so much all over the world that no country controls production of nothing but some small subsystem, one of thousands parts from all over the world assembled in final product with no true ownership and no country of production. Just few multinationals are richer than GDP of at least bottom 120 countries in the world and have no national allegiance of any kind.
This serves purpose of practically eliminating any political leverage that country may have over world production. But now with ZIRP nobody has any leverage over global elites who print their profits. In other words countries (with few partial exceptions) cannot reestablish control over their economies and social policies by imposing tariffs, trade barriers, capital, labor controls, specific social, economic, military, foreign policies or whatever in any way that would not result in collapse of their “hollow” economies and painful political turmoil at least during transition.
Even countries at war cannot stop cooperating economically, close borders or limit civilian trade, thing unheard off 50 years ago. The unimpeded and even increasing cross border trade and people movement between Russia and Ukraine continues, Poroshenko candy factories in Russia are making profit while they are on war footing. US increased exports to Russia in last 12 months while spewing apocalyptic rhetoric of WWIII. German own factories in Russia dramatically increased investment of their profits in Russia to avoid losses of manipulated currency play. These are examples of global integration paralyzing the policies.
This has most corruptive influence of national politics. That’s why all politicians that promised economic growth, betrayed the people as soon as they got in power since they knew the only way to the growth in global economy is to export if not it they have to cut expenses, collapsing governmental and private social programs and dismantling democratic institutions that still left, to pretend to pay un-payable debt.
Recent oil rise, last 10 day Bond trade instability, dramatic move down of German 10y Bund (yield rised) and collapse of dollar is nothing but predicted side-effect of soon coming US QE4 while euro QE sucked up already all European liquidity (much smaller then in the US), and made any good collateral scarce, when finally fake US recovery unravels.
The fallacy of debt based global economic system is only too apparent.
There is no way out of world pauperization and death spiral except to break through globalism in very painful ways. Unfortunately, people rather believe in illusion than face pain of reality and turn around to stop this genocidal system of alien class of global oligarchy directed towards human extermination, all other priorities rescinded.
For some more background on Japan situation:
https://contrarianopinion.wordpress.com/2015/02/20/japan-miracle-that-wasnt/
Really good summary!
I'd prescribe Ginseng.
Get Yellen to buck the assault of too many dongs.
lol he said weak dong, must be something to do with asian noodle.
A soft dong does not leave me feeling zloty.
Oh c'mon! Even if their currency IS called the Dong, you'd think they'd have renamed it by now. Especially after many years of having thousands of post-adolescent American males running through their country...every transaction a Beavis and Butthead wet-dream.
Long Dong Silver
nm...
I thought I'd make a funny comment about Vietnam's weak Dong, but somebody at ZH beat me to it.
Who'da thunk it?!?
Nobody likes a weak dong. Maybe they need a name change for their currency?
Didn't eve read the article. Went straight to the comments. Knew it was going to be funny. You ZH'ers are some of the funniest people on earth!