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Tag Archive for ‘Depreciate’

Vietnam’s February Trade Balance Swings to Deficit From Surplus

Vietnam’s trade balance swung to a deficit in February, reviving pressure on the currency to weaken after recent gains. The shortfall this month was $800 million, compared with a revised $172 million surplus in January, according to preliminary figures released by the General Statistics Office in Hanoi today. For the first two months of the year, the deficit totaled $628 million. The statistics agency hasn’t reported a monthly trade gap exceeding the $1 billion mark since September. Vietnam devalued the dong by about 7 percent a year ago as a persistent trade deficit and soaring…

Vietnam’s Dong Likely To Depreciate By 3pct In 2012: Ernst & Young

President of global consulting firm Ernst & Young in Asia Pacific, Lou Pagnutti said that Vietnam will face many challenges of macroeconomic instability in 2012, though these challenges have eased compared with last year. He also predicted that the currency of Vietnam will likely see its value depreciate by 3% compared to the US dollar this year. In an interview with Saigon Economic Times on February 21 when he visited Vietnam, Lou said that Vietnam’s inflation will be around 11.5% this year, lower than the 18.6% rate estimated by Ernst & Young for 2011. Inflation is being affected by the upward pressure on…

VN’s growth to be lower than target

Though inflation is subsiding, Vietnam’s gross domestic product this year may be lower than the 6 percent – 6.5 percent targeted by the Government, Ernst & Young said in its latest report on rapid-growth markets. “The Government faces a potentially hazardous restructuring of State enterprises and shakeout of smaller banks, and tries to remobilize the substantial domestic savings, which were stored in gold and hard currency,” Earnst & Young said in the Rapid Growth Markets Forecast. Ernst & Young also pointed out other reasons linked to the risks of further Vietnam dong devaluation that would limit the…

Vietnam Dong Gains After Trade Gap Narrows; Bonds Little Changed

Vietnam’s dong strengthened, snapping a three-day decline, after the government said the trade deficit narrowed in January. Bonds held stable. The country’s trade gap narrowed to $100 million, compared with a revised deficit of $269 million in December, according to preliminary data released today by the General Statistics Office in Hanoi. The currency gained 0.2 percent, to 20,976 as of 4:45 p.m. local time, according to prices from banks compiled by Bloomberg. The central bank fixed the reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side…

Vietnam Dong Likely Weaken By 3% at Year End: BVSC

Bao Viet Securities Company (BVSC) forecasted that the dong devaluation pressure may persist in 2012 and that the domestic currency is likely to depreciate by 3% at year end. Bao Viet Securities Company (BVSC) forecasted that the dong devaluation pressure may persist in 2012 and that the domestic currency is likely to depreciate by 3% to stay at VND21,700-VND22,100 per dollar at year end, the local online newspaper VnEconomy.vn reported. Yet, the dollar exchange rates are likely under control of the State Bank of Vietnam (SBV), the securities company said in its latest report, adding that the central bank will…

Can gold retain glory after Dragon year boom ?

Can the precious yellow metal retain its glory after the hype of China’s Dragon Year purchase boom is over? Can China’s Year of the Dragon lift gold prices to a new high or at least provide a major impetus initially in 2012 ? These are the two questions speculators raised at the beginning of this year. Many observers believe that boost in Chinese gold purchases during Lunar new year will certainly help prices to climb as it was seen as another fundamentals driving up gold this year. They rejected any thoughts that gold’s ten year dream run slowed down and is…

Factors affecting gold prices

Gold prices experienced dramatic ups and downs in 2011, arousing speculation among upset investors that the ten-year upward trend in gold prices is coming to an end. As the 2012 Chinese Spring Festival is drawing near, will gold prices continue to rise? Industry insiders believe that the fundamentals driving up gold prices remain unchanged, and it is still worth investing in gold. Factors affecting gold prices Industry insiders said that shortly after declining from its 2011 high levels, the gold price has started stabilizing, thereby increasing demand for gold as a hedge against risks. Zhao Xiangbin, chief analyst at the Tianjin Shengbaiya…

Vietnamese Dong Rises to One-Month High on Inflation Outlook

Vietnam’s dong advanced to its strongest level in a month after the central bank said inflation would slow. Government bonds were steady. Consumer prices will rise less than 12 percent at worst and about 8.5 percent in a “good” scenario, central bank Governor Nguyen Van Binh said on Jan. 12. Inflation in the $104 billion economy was 18.1 percent in December. The dong will depreciate 2 percent to 3 percent this year, Binh said. That would be the least since 2007, according to data compiled by Bloomberg. “After the central bank governor said they would devalue the dong by no more than 3 percent this…

Can gold regain its sparkle?

An uncertain economic outlook and a strengthening US dollar (see The greenback rides again) are combining to heap pressure on the prices of precious metals. But predictions of further subsidence in the gold price could end up being wide of the mark, according to a survey by the London Bullion Market…

Vietnam May Cut Rates as Inflation Eases

Vietnam signaled that it may cut policy interest rates to “more suitable” levels after the first quarter and weaken the dong this year as Asia’s fastest inflation eases. “The central bank will adjust policy rates to more suitable levels, aiming to help ease the average level of market interest rates,” central bank Governor Nguyen Van Binh said at a press conference yesterday. Vietnam faces a trade deficit, risks in the banking sector and slowing economic growth as the global recovery falters. While Indonesia and Thailand have cut borrowing costs in recent weeks to shield expansion, the World Bank and…