Dong may fall 10 percent this year: Report

The dong may weaken as much as 10 percent against the US dollar by the end of the year, Vietnam Investment Review newspaper reported, citing the Ministry of Planning and Investment.

The currency may fall as exports and foreign direct investment are forecast to contract amid the global recession, the newspaper said, citing the ministry’s National Center for Social Economic Forecast.

Foreign reserves are now equivalent to 12 weeks of imports, compared with 17 weeks in 2007, intensifying demand for dollars as the trade deficit swells and foreign investors sell Vietnamese securities, the newspaper said.

Bloomberg

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