The Vietnamese dong fell today, but central bank officials are certain that the currency’s exchange rate should remain stable over the longer term. One of the reasons for such outlook is the limited Vietnam’s exposure to the Chinese banking sector.
Vietnamese policy makers argued that Chinese banks have no significant presence in the country, meaning that the potential economic slowdown in China will have limited impact on Vietnam’s economy. Dao Quoc Tinh, Deputy Chief Inspector of the State Bank of Vietnam, said:
Chinese banks in Vietnam are very small banks compared with Vietnamese commercial banks and they donât have any considerable influence on Vietnamese businesses.
Considering that Vietnam’s foreign exchange reserves reached a record according to the estimates of the International Monetary Fund, Tinh concluded:
With all of these factors, we can say for sure that the dong/dollar exchange rate will be stable, as committed by the State Bankâs Governor.
USD/VND was up from 21,195 to 21,205 as of 13:28 GMT today.
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