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.