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Don’t let VND slide further, experts advise government

By Anh Minh   September 19, 2022 | 03:54 am PT
Don’t let VND slide further, experts advise government
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
Vietnam should not let the dong slide further as maintaining a stable currency exchange rate is key to controlling inflation, experts said at an economic forum Sunday.

A stable currency is the final layer of defense against inflation, and if it breaks, inflation will flood in and create many difficulties, said Truong Van Phuoc, former acting chairman of the Financial Supervision Committee under the National Assembly.

Professor Andreas Hauskrecht of the U.S.-based Indiana University said potential increases in the Federal Reserve rates this year or the next pose higher risks of economic depression.

This will cause the VND to gain against the Euro and other currencies, which could cause issues in payment and affect trade, he said.

Vietnam should not weaken its currency nor increase its rates as such actions could trigger financial instability, he said, advising prudent use of financial instruments.

The State Bank of Vietnam let the VND slide by 0.22% last week, sending the currency to a historic low of around VND23,800 per USD.

 
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