The State Bank of Viet Nam (SBV), the country’s central bank, on Wednesday depreciated the dong by 1% against the U.S. dollar in its latest move to cope with the devaluation of the Chinese yuan last week.

The SBV set the official mid-point rate at 21,890 dong to the dollar for interbank transactions, up 117 dong from a day earlier.

The central bank also widened the trading band for interbank dollar/dong transactions from 2% to 3%, after allowing it to move from 1% to 2% on Wednesday last week.

A bank employee works next to stacks of U.S. dollar notes Tuoi Tre

The new band means dollar/dong transactions can move either side of the mid-point, which is set daily by the central bank, within 3%.

The ceiling price for the greenback to be traded in Viet Nam is thus VND22,547 a dollar, and the bottom, VND21,233 a dollar.

The recent adjustments of the Vietnamese dong by the central bank are hoped to help the currency trade flexibly enough to ensure stability of the foreign currency market, as well as the competitiveness of Viet Nam’s exports.

(Source: tuoitrenews)