DANH MỤC TÀI LIỆU
EXCHANGE RATE POLICY OF VIETNAM
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Powerpoint Templates
EXCHANGE RATE
POLICY OF VIETNAM
Presented by: Tran Thi Thu Huong
Powerpoint Templates
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Vietnamese currency: Vietnam
dong (VND)
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We also have coins.
But people don’t really
like using them cause their
inconvenience (easily
being lost…)
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State Bank of Vietnam (SBV) is in charge of
conducting monetary policy
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Overview of exchange rate regime
1. Hard peg
Regime with no separate legal tender – incl.
another currency as legal tender (formal
dollarization) and currency union
Currency board
2. Intermediate regimes
Conventional fixed peg against a single currency
or a basket of currencies
Pegged exchange rates within horizontal bands
Crawling pegs
Crawling bands
3. Floating regimes
Managed floating with no predetermined path for
exchange rate
Independent floating
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Exchange rate arrangements in
Vietnam
Before March 1989: A multiple exchange
rate system (with three-tier exchange rate
system), fixed exchange rate policy
Three-tier ER system: official ER for
foreign trading, non-trading ER and
internal ER used in business relations
between banks and other domestic
business entities.
These rates were also used in state
budgeting in regard to foreign aid mainly
coming from the former Council for Mutual
Economic Assistance (CMEA) and the
former Soviet Union using the Transfer
Ruble.
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EXCHANGE RATE POLICY OF VIETNAM
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