ASIAN CURRENCY WATCH Vietnam's Dong Gone Wild

Last updated: Sat 13 Feb, 2010 12:25 pm | Viewed: 241 times

Countries in Asia are closely monitoring the moves by the State Bank of Vietnam where two recent devaluations have taken nearly 9% off the currency. Given the regions large reliance on exports, Thailand and a host of others are now under increased pressure to match prices.

Analysts say another devaluation may take place and it's possible the dong exchange rate to the USD could reach VND 20,000. Hyper inflation remains a key driver in the developing economy.

For most international hotels and premium grade property in Vietnam developers and owners continue to quote rates in USD as a hedge against devaluation.

Here in Thailand the baht has continued to appreciate, while many of the global markets could continue to capitulate over concerns on a possible economic crisis for the Euro back of Greece's loan defaults.

Hi Bill, not understanding the markets very well, the question i have is, 2 years ago i was getting 70 bahts for the pound, now its only 50.

Can you ever see it recovering to the good old days,and if so,when?

Regards

Bill Barnett responds: Hi currency is now a global phenomenom and much more volatility everywhere. Dollar, baht or pound, it can all sway either way, as for 50, I can't see that happening anytime soon but currency is not our gig, best to read the financial and follow the patterns but its a wild ride at the moment.

Nick, Wed 24 Feb, 2010 5:23 pm

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