Forex Blog: Currency Trading News & Analysis.

April 24th 2007

Vietnamese Dong Attracts International Attention

Despite a surging economy, Vietnam’s currency, the Dong, has managed to escape the attention of international traders and investors.  Last year, Vietnam registered the strongest economic growth in Southeast Asia, at 7.7%, and is projected to grow by over 8% this year.  However, due to a devaluation program maintained by the government to support the Vietnamese export sector, the Dong has remained low.  In addition, the government does not allow speculators to buy Vietnamese currency unless it is being used for a specific purpose, typically investment.  As a result, the market for currency derivatives is beginning to take-off in Vietnam, as speculators seek a means of capturing some of the strength in Vietnam’s economy that is sure to lift its currency.  The International Herald Tribune reports:

Vietnam this year ended a decade-long policy of “managed devaluation” that caused the dong to weaken 30 percent. The central bank will “keep the dong stable, in a flexible manner, so that it can help our exports,” said one analyst.

Read More: Currency is Vietnam’s new lure

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Exotic Currencies, Investing & Trading | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2024 Forex Blog.org. Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.