Vietnam will limit its devaluation of its dong currency at 2 percent this year and stick to its macroeconomic targets despite a slide in the yuan and a trade war between China and the US, its top trading partners, the prime minister said on Wednesday.
Vietnam "needs to stabilize the exchange rate and keep it flexible within a 2 percent band compared with the end of last year," said Prime Minister Nguyen Xuan Phuc in a statement on the government website. Several local economists last month advised the government to devalue the dong to keep exports competitive amid the devaluation of the yuan and other regional currencies.
The central bank's reference exchange rate has fallen by nearly 1.1 percent against the dollar since the end of last year, according to the State Bank of Vietnam. On the interbank market, the dong has slid by 2.56 percent. "We won't move ahead of the international monetary market as advised by many, given that there haven't been any real impacts," Phuc said, referring to the impact of the US-China trade war and the yuan devaluation.
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