4. The exchange rate of Vietnamese dong had been fixed at 20,828 dong per US dollar since...
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4. The exchange rate of Vietnamese dong had been fixed at 20,828 dong per US dollar since December 26, 2011. However, Vietnam’s central bank, the State Bank of Vietnam, devaluated its currency by 1 percent to 21,036 dong per US dollar on June 28, 2013.61
a. In order to devaluate its currency, what would be the intervention by the State Bank of Vietnam in the foreign exchange market?
b. What could be the effect of the devaluation of dong on the exports and imports of Vietnam?
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