The State Bank of Vietnam continues to manage the currency tightly allowing only gradual movements…The VNK is expected to see a modest depreciation potentially reaching 26,940 per dollar by year end. This is driven by continues US dollar strength, US tariffs on Vietnamese exports and Vietnam’s strategy to maintain export competitiveness through a slightly weaker dong. In other words it is a financial strategy for Vietnam to keep its currency low. Let’s hope Iraq does not develop the same habit.
