Vietnam has allowed commercial banks to trade U.S. dollar more freely against the Vietnamese dong, given a rising dollar inflow in the country, one of the youngest members of the World Trade Organisation.

The central bank widened the trading band between the dollar and the dong to plus or minus 0.75 per cent on Monday from 0.5 per cent previously, State Bank of Vietnam Governor Nguyen Van Giau said in a directive signed on the day with immediate effect.