Vietnam Devalues Currency 3.4% In Second Move Since Nov.

[churchill]

HONG KONG (MarketWatch) -- Vietnam devalued its currency 3.4% against the U.S. dollar effective Thursday, the second time in less than three months it has downwardly adjusted the value of the dong, according to reports.

The State Bank of Vietnam, the nation's central bank, announced late Wednesday the currency would be reset to 18,544 dong per U.S. dollar from 17,941 dong, according to a Dow Jones Newswires report which cited a central bank statement. Thursday's action comes after a devaluation of 5% in November.

Economists cited in news reports said a deteriorating fiscal position arising from a trade deficit and high inflation were the reasons behind the move. The action comes as Vietnam's economy has proven fairly resilient during the financial crisis, its gross domestic product expanding at a World Bank-estimated 5.5% in 2009.

http://www.marketwatch.com/story/vietnam-d...nk=MW_news_stmp

[samuibeachcomber]

cheap place for a holiday then.

[churchill]

and property ?

[PattayaParent]

Bugger, I've to to buy a load of Dong this month too.

[craigt3365]

I only visited one time, for about a month...was crazy carrying that bundle of cash around! Couldn't even use the ATM as it was just too much...

[Jonathanpattaya]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

[fullcave]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

Good idea maybe we could just add an extra zero. Or better yet simply continue to increase economic stimulus (barrowing money) and manipulating interest rates (money expansion).

[sokal]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

that is keynesian BS. When the US was the biggest export creditor nation, it had a strong currency. Its funny how smart the US really is, they made the rest of the world pay for their exported goods with gold(that is why they have 8000 tons) and then they turned into an import debtor nation and payed for everyone else s exports with worthless paper money.

[craigt3365]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

that is keynesian BS. When the US was the biggest export creditor nation, it had a strong currency. Its funny how smart the US really is, they made the rest of the world pay for their exported goods with gold(that is why they have 8000 tons) and then they turned into an import debtor nation and payed for everyone else s exports with worthless paper money.

I seem to remember studying this theory in Econ. It is surely an interesting theory. I was a minor in Econ....god help me!

[Naam]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

we are hearing this since three years but no Thaivisa member has the guts to write to Ms. Tarisa, Bank of Thailand and render good advice.

p.s. tourism = ~6.5% of GDP / 6% = lifeblood?

[Jonathanpattaya]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

we are hearing this since three years but no Thaivisa member has the guts to write to Ms. Tarisa, Bank of Thailand and render good advice.

p.s. tourism = ~6.5% of GDP / 6% = lifeblood?

"Much of this decrease in GDP can be attributed to fears of political instability and lack of consumer confidence. Mega infrastructure projects and foreign direct investment (FDI) were put on hold or cancelled, leaving tourism and exports as the main economic forces." Quote from Economy Watch.

[Jonathanpattaya]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

that is keynesian BS. When the US was the biggest export creditor nation, it had a strong currency. Its funny how smart the US really is, they made the rest of the world pay for their exported goods with gold(that is why they have 8000 tons) and then they turned into an import debtor nation and payed for everyone else s exports with worthless paper money.

BS is it? Well, almost every nation on the planet is employing Keynsian economic practices because there is simply nothing else left.

[flying]

Its funny how smart the US really is, they made the rest of the world pay for their exported goods with gold(that is why they have 8000 tons)

You know I always thought while Ron Paul calls for an audit of the FED they should call for an independent audit of Fort Knox

That gold has not been (independently audited) / accounted for in 50 years. I have a feeling if they open the doors they will find far less than the claimed 8000 tons. I would not be surprised in the least if they have been leasing/selling for decades to control/suppress prices

Edited February 12, 2010 by flying

[sokal]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

that is keynesian BS. When the US was the biggest export creditor nation, it had a strong currency. Its funny how smart the US really is, they made the rest of the world pay for their exported goods with gold(that is why they have 8000 tons) and then they turned into an import debtor nation and payed for everyone else s exports with worthless paper money.

BS is it? Well, almost every nation on the planet is employing Keynsian economic practices because there is simply nothing else left.

Why not do what the US did ? have a gold standard and demand that all exports and trade imbalances be paid in gold ? Where do you think their 8000 tons of gold came from ?

[Wrong Turn]

As I get paid in VN Dong, and I have Dong in my savings account, this means I am losing money. Yes, I get interest, but when I leave VN or wire money home, I'll have to buy USD on the black market.

Banks in Vietnam are not selling US Dollars, under any circumstances.

You have to go to the gold shops and pay the bad rate.

[Lancelot]

Thailand should follow suit and devalue the Baht. It makes no good sense for a strong currency when exports and tourism are the lifeblood.

On the oher hand, a strong Baht lowers the price of imported oil and capital goods...

[PattayaParent]

^but if you have a USD account in VN the banks will give you your money in USD and you make extra converting it to Dong in the gold shops.

Can't your employer pay you in USD? Mine did when I worked there.

[Wrong Turn]

^but if you have a USD account in VN the banks will give you your money in USD and you make extra converting it to Dong in the gold shops.

Can't your employer pay you in USD? Mine did when I worked there.

My employer does not and cannot pay in USD. It's illegal.

(I don't work for a multi-national company or NGO.)