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Toyvp » January 8th, 2025
Vietnam Closely Watching FX Market After Dong Fell to Record
(Bloomberg) — Vietnam’s central bank said it’s keeping a close eye on the local currency which fell to a record low last week, with Deputy Governor Dao Minh Tu pledging to stabilize the dong while keeping inflation on an even keel.
The State Bank of Vietnam will “closely monitor the market situation to manage exchange rates flexibly and appropriately, while synchronously coordinating it with other monetary policy tools to control inflation and ensure macroeconomic stability,” according to a statement issued Tuesday as SBV officials held a briefing.
The SBV will maintain a flexible monetary policy, according to the statement. Earlier in the briefing, Tu described the policy stance to be appropriate amid recent calls for some tightening to steady the dong. The strength of the US dollar after Donald Trump won the US presidency is impacting global currency markets including Vietnam, according to Pham Chi Quang, the head of SBV’s monetary policy department, at the same event.
The dong rose to 25,378 per dollar after the SBV remarks, poised to extend gains for a four straight day. It fell about 5% in 2024, hitting a record low in the last two days of the previous year.
The outperformance of Vietnam’s economy last year, along with manageable inflation, gives the monetary authority scope to consider policy tightening. In 2023, the SBV delivered among the region’s early monetary easing when it cut the refinancing rate, one of the key levers used by the central bank to guide borrowing costs, three times to 4.5% from a peak of 6%.
While the base case is for Vietnam to maintain monetary policy steady this year, “we do not rule out the risk the SBV could be forced to hike policy rates or devalue the currency, in the event of persistent US dollar strength,” Malayan Banking Bhd analysts Brian Lee Shun Rong and Chua Hak Bin wrote in a note on Monday.
Maybank estimates that with repeated intervention, Vietnam’s foreign currency reserves plunged to about $80 billion by the end of 2024 from peak of $109.6 billion in January 2022. Vietnam doesn’t give updates on its FX reserves.
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Asia’s growth star posted a 7.09% economic expansion in 2024, putting it in a strong position to achieve growth of at least 8% this year. Still, officials remain wary of the impact from Trump’s threat to impose broad tariffs.
Story Continues https://finance.yahoo.com/news…..ccounter=2
Clare » January 8th, 2025
Exclusive: Iraq signs 8 memoranda of understanding with Iran covering 3 areas
1/8/2024
Government sources revealed on Wednesday that Iraqi Prime Minister Mohammed Shia al-Sudani will sign about 8 memoranda of understanding with Iran in the security, economic and tourism fields.
The sources told Shafaq News Agency, “The visit of Al-Sudani and his accompanying delegation was not limited to discussing the latest developments and changes in the region and its security only, but it is hoped that memoranda of understanding (security, economic and tourism) will be signed according to controls and paragraphs agreed upon between the two sides.”
The sources explained that “the memoranda of understanding will be signed by members of the delegation accompanying the Iraqi Prime Minister with their counterparts from the Iranian side.”
Earlier today, Prime Minister Mohammed Shia al-Sudani reiterated his respect for the will of the Syrian people and support for any political framework they choose, while stressing Baghdad’s keenness to establish balanced relations with all regional and international parties.
Al-Sudani said, in a joint conference with Iranian President Masoud Pezeshkian, which was followed by Shafaq News, that “the visit to Tehran comes to strengthen bilateral relations between the two countries and the meeting with Pezeshkian, discussed this file and at the level of all common areas,” indicating that “the meeting also witnessed a discussion of the file of supplying Iraq with gas and energy.”
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Al-Sudani added, “The coming days will witness ministerial-level meetings between the two countries to discuss strengthening joint relations between Baghdad and Tehran,” stressing at the same time “following up on joint projects with Iran, especially the railway and housing sectors.”
During his current visit to Tehran, Al-Sudani discussed with the Speaker of the Iranian Islamic Shura Council, Mohammad Baqer Qalibaf, “bilateral relations between Iraq and the Islamic Republic of Iran, and ways to enhance them in a way that serves mutual interests, and emphasized the enhancement of cooperation in common files, as well as supporting cooperation between the legislative authorities in Iraq and Iran, in a way that contributes to consolidating the interests of the two countries.”
The meeting also discussed, according to a statement by Al-Sudani’s office received by Shafaq News Agency, “developments in Syria, where the unity of Syrian territory was emphasized, support for security and stability in it, and the necessity for the new political system to guarantee the rights of all Syrian components and spectrums, as well as joint work to reduce tensions and double efforts to establish regional and international peace and security.”
Al-Sudani arrived in the capital, Tehran, on Wednesday morning, on an official visit in response to an invitation extended to him by Iranian President Masoud Pezeshkian. LINK
Source: Dinar Recaps
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