Friday, 28 December 2012

Buy Vietnamese Dong Make Wise Investment

Buy Vietnamese Dong if you are looking for investment in currency. Since the economic slump of 2008, investors across the globe are on the lookout for currencies of upcoming countries which promise to offer handsome return within a reasonable time. Vietnamese Dong deserves attention for investment as Vietnam’s rate of interest, external debt and exports point to a recovery in the country’s economy, and its exchange rates are more or less stable.

The State Bank of Vietnam issues and guarantees the currency of United Vietnam since 3rd May 1978. The Viet Minh government of North Vietnam replaced the French Indo Chinese ‘piastre’ in 1946 by ‘Dong’ but South Vietnam continued with “piastre’ till the reunification of the two Vietnams in 1978 with the fall of ‘Saigon”. The ‘Dong’ first became ‘Liberation Dong’, and ultimately united Dong of a united nation. After stiff devaluations in 1985 it stabilised a bit, but ushered in a chronic and perpetual inflation.

One ‘Hao’ is the hundredth part of one Dong and the State Bank of Vietnam issued 1, 2, and 5 Hao and 1 Dong aluminium coins in 1978. The Bank issued 2 and 10 Dong notes in 1980 and 30 Dong notes in 1981. Since then, notes of different denominations were issued time to time. Even notes of 100000 and of 500000 Dongs were issued in 1994 and 2003 respectively. Coins simply evaporated from the market, and commemorative gold and silver and copper coins were not in circulation for a long time People had to exchange Dongs for coupons before going to buy small items. The State Bank began issuing coins again on 17th December 2003. They were valued at 200, 500, 1000, 2000, and 5000 Dongs. People cheered the reappearance of coins.

The currency code of Dong is VND and the most popular exchange rate is VND against US Dollar i.e. VND/USD. From 2003 till 2012 the USD/VND rate averaged between 17358 reaching all time high of 21033 in December 2011. The spot exchange rate of USDVND is quoted and exchanged everyday but forward trading of USDVND is done for specific future periods. There are exchanges and numerous websites which buy and sell and exchange currencies in Vietnam They provide regular currency rates, currency newsletters and currency converters. The USDVND exchange rate depreciated 0.10% in last 30 days.

The unemployment rate in Vietnam increased 2.06% in the third quarter of 2012 from 1.87 percent in the previous quarter. The cross domestic product of Vietnam was 123.96 billion US Dollars in 2011 which represents 0.20 of world economy. The interest in Vietnam was last recorded at 9%. The external debt of Vietnam was last recorded at 35139 in 2010. The population in Vietnam was 87.8 million in 2011. Vietnam recorded a current account surplus of 226 USD million in 2011.

All the economic parameters show an unmistakable and strong uptrend in the economic progress of Vietnam. This nation has entered a growth trajectory and Vietnamese Dong is expected to recover fast following the rise in GDP and current account surplus.

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This content has been taken from http://dinarexchange.wordpress.com/2012/12/28/buy-vietnamese-dong-make-wise-investment/

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