|17:05' 07/07/2008 (GMT+7)|
At that time, continued price increases and high interest rates, high trade deficit and rumours about the removal of the petroleum price subsidisation and about national foreign currency reserves all eroded people’s confidence in the local currency. That explains why people rushed to buy dollars: they wanted to protect their assets.
However, the people’s psychology, once again, showed its role in stabilising the market. Right after the government and State Bank of
Explaining the dollar price decreases in the last time, analysts say that information about the conflict in the
However, how the dollar will perform in the future remains a question. There are two contradictory arguments about the dollar price tendency.
Some experts believe that the government will let the VND revaluate in order to minimise the impacts of inflation. The experts argue that
Meanwhile, some others believe that the government will further devaluate the VND to encourage exports and limit imports. They believe that the ideal exchange rate would be VND17,000/US$1, while the forex daily trading band should be +/-2%.