Vietnam Ready to Act to Stabilize Dong, Will Boost Liquidity

Vietnam’s central bank said it’s prepared to intervene to ensure stability in the foreign exchange market, vowing to also contain inflation and improve liquidity issues facing the banking system.

The dong faces pressure “from complex, unpredictable global developments and domestic challenges,” Pham Chi Quang, the State Bank of Vietnam’s head of monetary policy, said at a quarterly briefing in Hanoi. “In this context, the State Bank manages the dong’s exchange rate flexibly to help absorb external shocks, while coordinating other monetary policies to stabilize the local foreign exchange market.”