3. Use the data on Vietnam's 2009 international transactions in the below table and answer the following questions Table 1: Vietnam's International Transactions, 2009 (Unit: billions U.S. dollars) B. Capital and financial account A. Current account balance balance Trade in goods Direct investment (net) Foreign investment in Vietnam, Exports, f.0.b. 57.1 liabilities Imports, f.o.b. -64.7 Vietnam's investment abroad, assets Trade in services Portfolio investment (net) Exports 5.8 Medium - and long-term loans Imports -8.2 Disbursements 6.9 7.6 -0.7 -0.1 4.5 6.1 6.9 -0.8 -1.7 -4.5 -9 Investment incomes ODA loans Receipts 0.8 Commercial loans Payments -3.8 Debt payments Unilateral transfers Short-term capital (net) Private (net) 6 C. Errors and omissions Official (net) 0.4 D. Balance of Payments E. Changes in international reserves Source: IMF Staff Report a. Calculate Vietnam's current account balance, financial and capital account balance, the official settlement balance (or the balance of payment in short), and the changes in the official reserve assets. Explain your calculations. b. Based on the economic situation in 2009, discuss the disequilibrium (surplus or deficits) in the current account balance, financial account balance, and the balance of payment. c. Using the graph of the basic exchange rate determination model , discuss what the State Bank of Vietnam (SBV) would do to maintain the fixed exchange rate. How would the exchange rate between dong and dollars change if the SBV did not intervene in the foreign exchange market? 3. Use the data on Vietnam's 2009 international transactions in the below table and answer the following questions Table 1: Vietnam's International Transactions, 2009 (Unit: billions U.S. dollars) B. Capital and financial account A. Current account balance balance Trade in goods Direct investment (net) Foreign investment in Vietnam, Exports, f.0.b. 57.1 liabilities Imports, f.o.b. -64.7 Vietnam's investment abroad, assets Trade in services Portfolio investment (net) Exports 5.8 Medium - and long-term loans Imports -8.2 Disbursements 6.9 7.6 -0.7 -0.1 4.5 6.1 6.9 -0.8 -1.7 -4.5 -9 Investment incomes ODA loans Receipts 0.8 Commercial loans Payments -3.8 Debt payments Unilateral transfers Short-term capital (net) Private (net) 6 C. Errors and omissions Official (net) 0.4 D. Balance of Payments E. Changes in international reserves Source: IMF Staff Report a. Calculate Vietnam's current account balance, financial and capital account balance, the official settlement balance (or the balance of payment in short), and the changes in the official reserve assets. Explain your calculations. b. Based on the economic situation in 2009, discuss the disequilibrium (surplus or deficits) in the current account balance, financial account balance, and the balance of payment. c. Using the graph of the basic exchange rate determination model , discuss what the State Bank of Vietnam (SBV) would do to maintain the fixed exchange rate. How would the exchange rate between dong and dollars change if the SBV did not intervene in the foreign exchange market
