Dollar hits new high in Vietnam

The dollar has gained around VND1,000 over the past week

The US dollar surged to a record high of VND22,200 on the unofficial market on Friday, one week after the central bank devalued the dong by 9.3 percent.

News website VnExpress reported that even though market activity remained almost the same without any significant changes in supply and demand, the greenback continued its climb against the local currency. The dollar has gained around VND1,000 over the past week.

The central bank’s devaluation last week aimed to narrow the gap between official and unofficial rates.

The official rates at commercial banks on Friday, however, were still far behind the black market rate of VND22,200. Vietcombank, for instance, quoted the dollar at VND20,885.

Le Duc Thuy, Chairman of the National Financial Supervisory Commission, was quoted in a Lao Dong (Labor) newspaper report as saying that the recent devaluation may be the only adjustment in 2011.

Thuy said he saw no reason for another devaluation of the dong through the end of the year.

Source: Thanh Nien

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