MUMBAI (Commoditiescontrol) - Vietnam, current leading importer of Indian cotton, on Wednesday devalued its currency - Dong - for the third time this year to heal its export sector.
The country’s exports sector is reeling under fresh problems after China surprisingly devalued the Yuan. China is Vietnam’s leading trading partner, therefore it was bound to leave a huge impact on the later’s trade balance sheet.
The State Bank of Vietnam also widened the dollar/dong trading band for the second time in a week, underscoring concerns a weaker yuan could further inflame a bloated trade deficit. Today, the bank lowered Dong’s official mid-point rate by 0.99 percent to 21,890 dong per dollar and widened the trading band to 3 percent from 2 percent.
Between January-July this year, Vietnam’s exports posted a trade deficit of $3.53 billion compared to $1.59 billion surplus in the year-ago period.
Shipments grew 8.9 percent in the first seven months of the year, below the government's 10 percent target.
(By Commoditiescontrol Bureau; +91-22-40015532)
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