The State Bank of Vietnam has devalued the dong by 3.4% against the US dollar to help stabilize the economy. The average interbank rate is now 18,544 VND to the dollar — after the second devaluation in three months; the dong’s value dropped 5.4% in November.
Analysts say the adjustment was needed to bring the official rate closer to the open market price. Banks will now be able to buy more dollars, benefiting exporters and stabilizing the foreign exchange market. A gap between the official and black market rates had caused instability.
The devaluation is expected to help exports, reduce the trade deficit, and help prevent speculation in the greenback.