When Will the Vietnamese Dong Revalue?
The Vietnamese dong is not expected to rise in value or be significantly re-valued in the foreseeable future, according to Forbes. In January 2015 the State Bank of Vietnam devalued the dong to help Vietnamese exporters who rely on a competitive currency, reports Bloomberg.
A number of Americans are buying the Vietnamese dong and other currencies, such as the Iraqi dinar, in the hope that these currencies rise significantly in value, reports Forbes. These currencies are often referred to as scam currencies, and while they are legal currencies, the probability that they eventually rise significantly in value is very low. Additionally, most banks and currency exchanges charge a premium for buying such low-volume currencies, and many holders of Vietnamese dongs may have trouble selling the currency back even if it does increase in value.
The devaluation of the Vietnamese dong in January 2015 was the second devaluation in seven months, states Bloomberg. The Vietnamese Central Bank is trying to keep the dong in line with a rising U.S. dollar. In 2014 the Vietnamese dong fell 1.4 percent against the U.S. dollar. By keeping the dong at a competitive rate the Vietnamese government is keeping its export-based economy growing. The Vietnamese economy grew 5.98 percent in 2014.