Vietnam to devalue dong and raise rates

Vietnam announced on Wednesday that it will devalue the dong by over 5 per cent, raise interest rates and request big exporters to sell foreign exchange to the central bank in a dramatic attempt to underpin the beleaguered currency. The central bank also said it would reduce the trading band of the dong against the dollar to 3 per cent above and below a daily mid-point set by the central bank from 5 per cent (Reuters, more here).

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