Thread: Latest news on the Dong!

From what I am seeing, this is truly beginning to look very good. Many countries, including China, Malaysia, Sri Lanka, etc. investing in Vietnam...this is getting exciting . Hopefully things in Vietnam will take a major upswing with all this building and foreign investments.

Question: I haven't looked (not quite sure where to look), but is there a CB site for Vietnam that we can keep up with the daily rates...like we (Socata and others actually) keep up with the CBI on the dinar rates?

Thanks for all the great news,
Patty

Since September 2006, local banks have experienced US dollar surpluses for the first time with massive dollar inflows into the booming stock exchange and sharp increases in FDI attraction. This situation has put pressure on the State Bank, as the ultimate purchaser of local banks’ dollar surpluses, to revalue local currency.

WOW!!! Did i read that right?

Originally Posted by cooldolphins

WOW!!! Did i read that right?

Cool find cooldolphins,
I am assuming that this pertains to Vietnam since you posted it here. This is fantastic for our investment . Was there more to this article? Can you help us out on where you found it?

Thanks,
Patty

Originally Posted by davzgirl

Cool find cooldolphins,
I am assuming that this pertains to Vietnam since you posted it here. This is fantastic for our investment . Was there more to this article? Can you help us out on where you found it?

Thanks,
Patty

Quote:



VietNamNet Bridge - State Bank difficulties in managing foreign exchange rates over the past seven months could remain the biggest challenge to the economy in 2007, according to a United Nations economic survey.
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has forecast that major currencies in the region will appreciate as a result of capital inflows. UNDP’s senior country economist Jonathan Pincus said Vietnam’s success in attracting foreign direct investment, portfolio investment, remittances and official development assistance would cause the Vietnamese dong to appreciate against the US dollar if the State Bank did not introduce appropriate checking measures.
So far this year, the dong has gained 0.3 per cent against the US dollar, currently sitting at VND16,047 per dollar despite an earlier State Bank plan to slightly depreciate the local currency by 1 per cent to maintain trading competitiveness.
Since September 2006, local banks have experienced US dollar surpluses for the first time with massive dollar inflows into the booming stock exchange and sharp increases in FDI attraction. This situation has put pressure on the State Bank, as the ultimate purchaser of local banks’ dollar surpluses, to revalue local currency.
“Exchange rate management has become more challenging with the massive growth of local bourses, because a minor change in the rate could have a wide-range of effects,” said Phi Dang Minh, head of the State Bank’s Foreign Exchange Department.
UNESCAP’s statistics show by 2006, with more than 200 listed joint stock companies, Vietnam’s market capitalisation stood at just $14 billion, or 22.4 per cent of GDP. But, according to the World Bank’s latest report, market capitalisation to date has reached $24.4 billion - 39.2 per cent of GDP. According to estimates, from November 2006 to March 2007, foreign investors have injected about $4 billion into local bourses.
Additionally, over the first four months of 2007, Vietnam has lured $3.51 billion via foreign direct investment, recording 54.7 per cent growth against 2006.
According to an official from Vietcombank’s Foreign Exchange department, local banks are still in dollar surpluses, resulting in banks’ lower dollar trading price than State Bank’s official rate.
In early 2007, local banks were allowed by the State Bank to trade up to 0.5 per cent either side of the daily published official rate from a previous percentage of 0.25.
“A wider trading band for domestic transactions is a good thing to the extent that it allows minor adjustments to take place in the official market rather than in the informal market.
“But, careful supervision of banks and development of more sophisticated instruments to control the money supply are needed to ensure that financial liberalisation does not weaken the capacity of the State Bank to manage the exchange rate while keeping inflation in check,” said Pincus.
VietNamNet - Exchange rates may trip economy in 2007


It's on the previous page Patty.

Originally Posted by notazbad2000

Quote:



VietNamNet Bridge - State Bank difficulties in managing foreign exchange rates over the past seven months could remain the biggest challenge to the economy in 2007, according to a United Nations economic survey.
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has forecast that major currencies in the region will appreciate as a result of capital inflows. UNDP’s senior country economist Jonathan Pincus said Vietnam’s success in attracting foreign direct investment, portfolio investment, remittances and official development assistance would cause the Vietnamese dong to appreciate against the US dollar if the State Bank did not introduce appropriate checking measures.
So far this year, the dong has gained 0.3 per cent against the US dollar, currently sitting at VND16,047 per dollar despite an earlier State Bank plan to slightly depreciate the local currency by 1 per cent to maintain trading competitiveness.
Since September 2006, local banks have experienced US dollar surpluses for the first time with massive dollar inflows into the booming stock exchange and sharp increases in FDI attraction. This situation has put pressure on the State Bank, as the ultimate purchaser of local banks’ dollar surpluses, to revalue local currency.
“Exchange rate management has become more challenging with the massive growth of local bourses, because a minor change in the rate could have a wide-range of effects,” said Phi Dang Minh, head of the State Bank’s Foreign Exchange Department.
UNESCAP’s statistics show by 2006, with more than 200 listed joint stock companies, Vietnam’s market capitalisation stood at just $14 billion, or 22.4 per cent of GDP. But, according to the World Bank’s latest report, market capitalisation to date has reached $24.4 billion - 39.2 per cent of GDP. According to estimates, from November 2006 to March 2007, foreign investors have injected about $4 billion into local bourses.
Additionally, over the first four months of 2007, Vietnam has lured $3.51 billion via foreign direct investment, recording 54.7 per cent growth against 2006.
According to an official from Vietcombank’s Foreign Exchange department, local banks are still in dollar surpluses, resulting in banks’ lower dollar trading price than State Bank’s official rate.
In early 2007, local banks were allowed by the State Bank to trade up to 0.5 per cent either side of the daily published official rate from a previous percentage of 0.25.
“A wider trading band for domestic transactions is a good thing to the extent that it allows minor adjustments to take place in the official market rather than in the informal market.
“But, careful supervision of banks and development of more sophisticated instruments to control the money supply are needed to ensure that financial liberalisation does not weaken the capacity of the State Bank to manage the exchange rate while keeping inflation in check,” said Pincus.
VietNamNet - Exchange rates may trip economy in 2007


It's on the previous page Patty.

Thanks Notazbad, I guess I jumped to the last page of the thread too soon ...I appreciate the heads up

Originally Posted by davzgirl

Thanks Notazbad, I guess I jumped to the last page of the thread too soon ...I appreciate the heads up

No problem Sis!

Originally Posted by notazbad2000

No problem Sis!

Exciting times ... must keep the head screwed on properly and pay attention

Which makes me wonder...will the Dinar and Dong be revalued at the same time? They seem to be running neck and neck at the moment with the information coming out...

Originally Posted by tiffany

Which makes me wonder...will the Dinar and Dong be revalued at the same time? They seem to be running neck and neck at the moment with the information coming out...

I hear what you're saying Tiff. That seems to be what the IMF has in mind. The VND has been ready for some time now, just waiting in the cut for the dinar to catch up. If there is any lag time, one of those currencies is bound to get ate up by the other, that's for sure.

Originally Posted by notazbad2000

I hear what you're saying Tiff. That seems to be what the IMF has in mind. The VND has been ready for some time now, just waiting in the cut for the dinar to catch up. If there is any lag time, one of those currencies is bound to get ate up by the other, that's for sure.

... why, I'm not sure I know what you mean....

GOBBLE~GOBBLE BABY!