State Bank keeps tight lid on forex rates

VietNamNet Bridge – The US dollar has remained weakened internationally since September, and the Vietnamese dong, its foreign exchange rates largely pegged to the value of the greenback, has been under strong pressure to appreciate despite Government efforts to keep it in check. Economists are expressing doubts over the State Bank of Viet Nam’s long-term ability to stabilise the dong. HSBC economist Prakriti Sofat, in a November 29 report, said, "Double digit inflation and the risk of [inflation] in the teens suggest that it’s only a matter of time before the central bank gives up its policy on dong appreciation.