The dong is down.
 

But that is positive, according to Kevin Snowball.

You just can't make these things up, folks.

Chas

http://www.ft.com/cms/s/0/c22bc764-d...nclick_check=1

Sorry, my link died. Will have to do the cut and paste.

Chas



Vietnam devalued its currency by 5.4 per cent against the dollar yesterday and raised interest rates by a full percentage point in an effort to cut inflation and underpin the beleaguered dong.

The dong has come under pressure recently as inflation started climbing and domestic demand, driven by the country's $8bn stimulus programme, drove the current account deficit to close to $2bn a month.

It was trading on the grey market at 19,800 to the dollar on Tuesday but came back to 19,500 after the government move.

Analysts, however, questioned whether financial markets would believe the latest move had put a floor under the dong.

"The decision poses further challenges to the central bank's credibility," said Tai Hui, Standard Chartered Bank economist. "The risk is that local investors will pay little attention to official comments going forward, which may exacerbate devaluation pressure on the currency."

For weeks, the government had insisted that it would not give in to pressure on the dong. "Vietnam will not devalue our currency," Nguyen Minh Triet, president, said in Singapore last week. "We will take cautious steps on our monetary policy."

Yesterday's move cut the mid-point of the currency's managed float range from 17,034 dong to the dollar to 17,961, while narrowing the daily trading range from 5 per cent to 3 per cent either side. The benchmark interest rate was increased from 7 per cent to 8 per cent.

The Ho Chi Minh Stock Index fell 4.5 per cent. Some analysts, though, said yesterday's moves would have a beneficial effect in the medium term. "I think it is positive, because it clears up some uncertainty," said Kevin Snowball of PXP Vietnam Asset Management.

(Excerpt) Read more at ft.com ...

Send not to seek for whom the bell tolls . . . ding dong.:D

Ain't it the truth!

John

My dong has been down for a few years. But, they make a pill for that now.


Dave

is that why is says "senior member" under your username?

No one saw the least amount of irony in the "Ho Chi Minh Stock Index" and an analyst by the name of "Snowball"?

I thought capitalism was dead.

Chas

I saw on YouTube a video of the Saigon skyline-It ain't New York, but it was still pretty impressive-Lots of those one-sided construction cranes, & most of the big buildings looked pretty new. I thought it was a nice-lookin' town.