State Bank makes surprise adjustment to value of dong

HA NOI — The State Bank of Viet Nam made a surprise decision late yesterday to adjust the interbank exchange rate of the Vietnamese dong against the US dollar.

The adjustment from the VND18,544 to VND18,932 to the dollar, a devaluation of approximately 2 per cent, was intended to help curb the trade deficit, the State Bank said.

The move was also a likely response to the spiking cost of US dollars on the black market. Yesterday morning, the dollar shot up beyond VND19,300, its highest level since the beginning of the year. By 10a.m, the price had risen to VND19,310-19,350.

The new interbank rate takes effect today. — VNS