10:34 | 20/08/2015 Finance - Banking
The State Bank of Vietnam (SBV) has devalued the Vietnamese dong by an additional 1% against the US dollar on August 19 and widened the trading band for the Vietnamese dong to 3% following a sharp depreciation of the Chinese yuan on August 11.
The US dollar is now traded at the maximum of VND22,547
After the adjustment, the US dollar is now traded at the maximum of VND22,547 and the minimum of VND21,233.
Only a week ago on August 12, the SBV widened the trading band for the Vietnamese dong from 1% to 2% in a bid to proactively and flexibly cope with the biggest devaluation of the Chinese yuan in two decades.
The move was seen as a timely solution, appropriate with the current situation and has generally received positive comments from the public, the SBV stated.
After the two latest adjustments, the Vietnamese dong is expected to be flexible enough to respond to unfavourable developments in the international market in the remaining months of this year and in the early months of 2016, thus ensuring the stability of the foreign currency market and the competitiveness of Vietnamese goods.
The SBV said it would carry out synchronous measures and monetary policies and that it is prepared to sell foreign currency if necessary to stabilise the foreign currency market and exchange rate within the permitted margin.
This is the third time since early this year that the SBV has devalued the Vietnamese dong by a total of 3%./.