In response to currency pressures the State Bank of Vietnam or SBV has adopted a flexible monetary policy to maintain economic stability. The central bank has intervened in the foreign exchange market by selling foreign currencies managing liquidity…Additionally the SBV has shifted from a fixed to a floating exchange rate mechanism allowing the dong to fluctuate within a controlled range to better absorb external shocks. We can only hope the IQD will join the float option sooner rather than later.
