Vietnam plans to allow its local currency, the dong, to trade more flexibly against the dollar, as part of a package of measures to fight soaring inflation, a government statement said.

The statement, posted on the government website, said the daily trading band for the dong against the dollar would be widened to 2 per cent up or down from the daily exchange rate set by the central bank, up from the current band of .75 per cent. It also said Hanoi would indefinitely delay any international bond issues, and raise banks’ compulsory reserve levels.