Vietnam doubles dong’s trading band after China devalues yuan

Bloomberg

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Vietnam doubles dong’s trading band after China devalues yuan

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Vietnam widened the dong’s trading band on Wednesday, the central bank said in a statement on its website.
The currency can now trade as much as 2 percent either side of a fixing set by the monetary authority, from 1 percent previously. The dong was little changed at 21,825 a dollar as of 8:53 a.m. in Hanoi, data compiled by Bloomberg show. The dong’s fixing was set at 21,673, the same as on Tuesday.
The move follows two devaluations of the dong this year, by 1 percent each, in January and May. It also comes after China slashed the yuan’s reference rate by a record 1.9 percent on Tuesday and a further 1.6 percent on Wednesday.
The State Bank of Vietnam widened the dong’s daily trading band as China’s currency devaluation “will have a negative impact on the Vietnamese economy,” the central bank said in the statement.

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