FX.co ★ Vietnam Ordered the Public Companies to Deliver the Currency

Vietnam Government required from the major public companies to sell their reserves of foreign currency to the banks, - Reuters reports. The purpose of such initiative is supporting the dong rate which has been devaluated by more than 20% for the last 3 years.
At the same time, the country’s Prime Minister Nguyen Tan Dung approved the package of tightening the monetary and fiscal policies. In such a way, the Government is going to prevent the inflation speed-up and balance the economic situation.
Obtaining the currencies from corporations the banks will be able to sell them at official rate as the need arises.
Presently, the non-official rate of the US dollar in Hanoi exchange offices touches around 22 000 dongs per dollar. Dong has slightly solidified from the last week when dollar was worth 22500 dongs.
Last three years Vietnam has been facing the problem of high trade and budget deficits. It has led to the currency outflow from the country and dong depreciation.