The State Bank of Vietnam won’t devalue the dong further for the rest of the year, central bank deputy governor Nguyen Thi Hong said Tuesday.
The SBV last week devalued the dong by 1% against the U.S. dollar and widened its trading band to 3% from 2% in response to a weakening Chinese yuan and a possible rate increase by the U.S. Federal Reserve.
Ms. Hong said in a statement that last week’s policy action is a pre-emptive move that would help make the dong more competitive and give room for flexible movement of the exchange rate.
“The central bank, therefore, won’t devalue the dong further, but will use all measures available to keep the exchange rate stable through the year-end and during the first months of 2016,” she said.
The central bank said last week that if necessary, it is willing to pump U.S. dollar into the local market to support the dong.
Source: http://www.wsj.com/
Key words: Vietnam, will not, devalue, dong, further, this year
