The Vietnamese dong will not depreciate much against the US dollar in the second half of this year, so the whole year’s slide will be 3 per cent at the most, BVSC has forecast.

Exchange rates were forecast to rise slightly in the coming years as the State Bank of Vietnam (SBV) fixed interest rates for mobilised deposits at 0 per cent, following the FED’s plan to raise the USD interest rate three times in 2018.

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VietNamNet Bridge - The State Bank of Vietnam (SBV) has had to pump a large amount of dong through the open market operation (OMO) to ease a “dong fever” in the interbank market.

Any ODA receiver who borrows yuan from China, including Vietnam, will be at a disadvantage because of the yuan appreciation and US dollar depreciation, economists say.  

 VietNamNet Bridge – The Vietnam dong is believed to be undervalued by 39 percent if compared with the US dollar.

The dollar price increases have put businesses on tenterhooks, though it is now just the third quarter of the year, while they would only need more dollars in the fourth quarter to make payment for the imports.

 VietNamNet Bridge – The dollar price has been increasing these days because of the slight demand increase. However, the dong/dollar exchange rate is believed to get stabilized by early July 2013.