The domestic currency, the dong, could weaken by only 2-3% if inflation is curbed at below 10%, the Saigon Times quoted Vu Dinh Anh, Deputy Head of the Institute for Scientific Research, Market and Price (ISRMP) as saying.

The dollar exchange rates will become much more stable thanks to improved foreign currency supply and modest demand for foreign currency, the expert said.

Yet in 2012, public debt crisis in Europe and its consequences may cause the dollar to maintain its strength or even appreciate relatively against other strong currencies, Anh said.

Governor of the State Bank of Vietnam (SBV) reiterated that the dong may depreciate by 2-3% in 2012, sending a signal that the management agency encouraged local enterprises to borrow foreign currencies, Anh commented.

 

Source Sophie/ StoxPlus