Vietnam devalues the dong by 8.5%
14th February 2011
Vietnam has devalued its currency, the dong, by 8.5%, in a bid to tackle soaring inflation and an increasing trade deficit.
The State Bank of Vietnam said on its website that it was altering the official dong-dollar exchange rate from 18,932 dong to 20,693 dong and narrowing the official trading band from 3% to 1%.
It is good news for travellers looking to head to Vietnam, who will no doubt be looking to buy travel money for their trip after securing their flights, accommodation and travel insurance.
Pham Chi Lan, a former government economic adviser, said the authorities had held the dong at an artificially high level for too long, but warned other steps must be taken to overcome a growing trade deficit and high inflation.
"Curbing inflation depends on controlling state investment and the state-owned economic sector, which needs to improve efficiency," she said.
Vietnam, one of the fastest-growing economies in Asia, has been plagued by a string of recent woes.
The country's inflation hit nearly 12% and the trade deficit stood at 12.4 billion US dollars last year, according to government figures.
Copyright © Press Association 2011
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