Vietnam's central bank lowers benchmark exchange rate for six consecutive days, causing VND/USD to fall to a historic low
Due to the continued rise in international market concerns about US economic policies and trade, emerging market currencies are generally under pressure, with countries such as Vietnam, which are highly dependent on foreign trade, being particularly impacted.
Vietnamese dong drops to historic low
On Tuesday, VND/USD fell 0.5% to 25516 Vietnamese dong, breaking the historical low set in December last year. This is the direct result of the Bank of Vietnam lowering its exchange rate benchmark for the sixth consecutive day.
Trade concerns have led to a strengthening of the US dollar, putting pressure on emerging market currencies including Vietnam, "analysts pointed out
Central Bank Policies and Exchange Rate Fluctuations
According to market research, the State Bank of Vietnam lowered its daily reference exchange rate to a historical low of 24522 Vietnamese dong to one US dollar on Tuesday. According to policy regulations, the Vietnamese dong can freely fluctuate within a range of 5% above and below the benchmark exchange rate.
The impact of the international economic environment
Recently, emerging market currencies have been hit by a dual impact of US policies and the strengthening of the US dollar, especially in economies that rely on exports. As the uncertainty of the US monetary policy path increases, the risk of capital outflows from emerging markets also further increases.
Editor's viewpoint:
The decline in the Vietnamese dong exchange rate reflects the vulnerability of small and medium-sized economies in the international market to global economic uncertainty. In the future, Vietnam may need to strengthen currency management and economic restructuring to cope with potential capital outflows and economic pressures.
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