Vietnam widens Dong’s trading band after China devalues Yuan
Vietnam widens Dong’s trading band after China devalues Yuan
Vietnam widened the dong’s trading band on Wednesday, the central bank said in a statement on its website.
The currency can now trade as much as 2 percent either side of a fixing set by the monetary authority, from 1 percent previously. The dong was little changed at 21,825 a dollar as of 8:53 a.m. in Hanoi, data compiled by Bloomberg show. The dong’s fixing was set at 21,673, the same as on Tuesday.
The move follows two devaluations of the dong this year, by 1 percent each, in January and May. It also comes after China slashed the yuan’s reference rate by a record 1.9 percent on Tuesday and a further 1.6 percent on Wednesday.
The State Bank of Vietnam widened the dong’s daily trading band as China’s currency devaluation “will have a negative impact on the Vietnamese economy,” the central bank said in the statement.
