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Vietnam is rethinking its policy of foreign exchange rates
A visit to Vietnam is a fascinating adventure, as well as an incredible
education. The country is a mixture of captivating as well as chaotic
experiences.
Hanoi, the capital, is the modern cultural
center for the country; in fact it has always been the focal point of the
country for the last 1,000 years.
Ho Chi Minh City is still called Saigon in many
circles and is the business hub for the country and it’s as energetic and upbeat
as its big sister in the North. Urban life in Vietnam is completely different
from rural Vietnam and that what makes the country such a remarkable place to
visit. The country is known for its beautiful beaches diverse countryside and
its exceptionally friendly people.
To say that the economy of Vietnam is an ongoing study in economics is an
understatement. The last war devastated the economy and the US enforced trade
boycott put a strangle hold on development. Agriculture has been the main source
of income for the country, rice has been the cash cow for the economy, but
tourism is now playing a major role in economic growth. The US Dollar is still
the reserve currency of choice for businesses as well as the people, but the
Vietnamese Dong has lost over 8% against the Dollar over the last year on the
unofficial market. The Official trading rate of the Dong has been stronger than
the unofficial rate, which has some government officials talking devaluation.
The central bank however told parliament that devaluation was not an option
because of the risks to the foreign corporate and national currency debt.
Vietnam had $23 billion in cash reserves at the end of 2008, which was enough to
maintain the exchange rate, but those reserves are now around $16.5 billion and
the unofficial Dong rate sank to an all time low of 19,800 to a dollar when gold
prices pushed up the demand for Dollars. One step the government is taking is to
introduce other currencies in their economy, so they are not so Dollar
dependant. That move will definitely impact currency exchange rates in the
future.
Where should I exchange currency for my trip to Vietnam?
Waiting to exchange money at the airport in Ho Chi Minh City or Hanoi can be a
costly mistake, especially with the recent value changes between the US Dollar
and the Dong. The best way to exchange money for a trip to Vietnam is through a
professional currency broker who watches the currency market by the hour. A
currency broker will give you a real time rate and will also help you develop an
exchange strategy while you’re planning the trip. A broker can help you average
your exchanges to offset the sudden surges in value that have prompted Vietnam
to re-think its current exchange rates. A professional will also save you money
because the transaction fees that banks and credit card companies charge will
also have an impact on your budget.
Other Travel Tips
You can carry $5,000 through customs in Vietnam without declaring it. If have
more than that amount, you must fill out a customs declaration or it could be
confiscated. Always carry cash in leg pouch, money belt or hidden pocket that’s
secure and out of sight and use hotel safes when you reach your destination.
Follow local security procedures and remember common sense is your best security
weapon when you use it.
The professionals at ForexTraders.com provided this article to help you save
money when planning a trip to Vietnam. For additional information on
trading currencies and forex, please make sure to visit the site.
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