Vietnam Proposed to Widen VND/USD Trading Band to Boost Exports
The National Center for Socio-economic Information and Forecast (NCEIF) under the Ministry of Planning and Investment (MPI) has proposed that the government widen the daily trading band of the Vietnam Dong against the Dollar to plus and minus 6% or 7%.
This measure is among three that the NCEIF put forward in order to boost exports this year after the Southeast Asian country exported only $32.3 billion worth of goods between January and July, down 13.5% from a year earlier.
The NCEIF also recommended that the government diversify the basket of foreign currencies to reduce dependence on the greenback and to provide preferential credits for exporters.
It also forecasts that Vietnam’s exports will likely drop between 2.2% and 6.4% to $58.9 billion-$61.3 billion this year, the paper said.
Currently, the trading band of VND against USD is plus and minus 5%. (Urban Economy)
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