tailieunhanh - EXCHANGE RATE POLICY OF VIETNAM

Chế độ không đấu thầu pháp lý riêng biệt - bao gồm. một tiền tệ như đấu thầu hợp pháp (đô la hóa chính thức) và thống nhất tiền tệ Tiền tệ hội đồng quản trị | Powerpoint Templates EXCHANGE RATE POLICY OF VIETNAM Presented by: Tran Thi Thu Huong Powerpoint Templates Vietnamese currency: Vietnam dong (VND) We also have coins. But people don’t really like using them cause their inconvenience (easily being lost ) State Bank of Vietnam (SBV) is in charge of conducting monetary policy Overview of exchange rate regime 1. Hard peg Regime with no separate legal tender – incl. another currency as legal tender (formal dollarization) and currency union Currency board 2. Intermediate regimes Conventional fixed peg against a single currency or a basket of currencies Pegged exchange rates within horizontal bands Crawling pegs Crawling bands 3. Floating regimes Managed floating with no predetermined path for exchange rate Independent floating Exchange rate arrangements in Vietnam Before March 1989: A multiple exchange rate system (with three-tier exchange rate system), fixed exchange rate policy Three-tier ER system: official ER for foreign trading, . | Powerpoint Templates EXCHANGE RATE POLICY OF VIETNAM Presented by: Tran Thi Thu Huong Powerpoint Templates Vietnamese currency: Vietnam dong (VND) We also have coins. But people don’t really like using them cause their inconvenience (easily being lost ) State Bank of Vietnam (SBV) is in charge of conducting monetary policy Overview of exchange rate regime 1. Hard peg Regime with no separate legal tender – incl. another currency as legal tender (formal dollarization) and currency union Currency board 2. Intermediate regimes Conventional fixed peg against a single currency or a basket of currencies Pegged exchange rates within horizontal bands Crawling pegs Crawling bands 3. Floating regimes Managed floating with no predetermined path for exchange rate Independent floating Exchange rate arrangements in Vietnam Before March 1989: A multiple exchange rate system (with three-tier exchange rate system), fixed exchange rate policy Three-tier ER system: official ER for foreign trading, non-trading ER and internal ER used in business relations between banks and other domestic business entities. These rates were also used in state budgeting in regard to foreign aid mainly coming from the former Council for Mutual Economic Assistance (CMEA) and the former Soviet Union using the Transfer Ruble. · Before March 1989 ERs were set by the government at fixed levels based on economic and granting agreements between the government of Vietnam and other related countries This led to high trade deficit and the large difference in the official and parallel exchange rate. caused problems for the government budget promoted illegal activities in the black market. Mar 1989 - Feb 1999: VND has been pegged to the USD with several discrete realignments. The multi-tier ER system was unified into a single official ER (OER) set by the State Bank of Vietnam (SBV). · The OER was adjustable in principle, based on inflation rates, interest rates, balance of payment (BOP) stance and the ER in the .

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