Vietnam set the mid-point rate for the dong currency at 21,896 to the dollar for interbank transactions on Monday, the first day it resumed a policy of adjusting the rate on daily basis to allow more flexibility.
Monday's rate was down slightly from 21,890 dong per dollar which the State Bank of Vietnam (SBV) had kept unchanged since Aug. 19, 2015, when it allowed the dong to fall 1 percent against the dollar.
The central bank lowered the mid-point rate three times in 2015 and also widened the dollar/dong trading band to +/- 3 percent of the mid-point to protect exports from a surprise devaluation of the Chinese yuan.
The dong fell 4.94 percent against the dollar last year on the interbank market, faster than a decline of 1.38 percent the previous year, based on Reuters data.
In December 2009, the SBV replaced the policy of adjusting the mid-point rate on daily basis by setting the rate for a longer period.