Asian currency markets have suffered a sharp shock recently, with the depreciation of the Vietnamese dong particularly significant, even faster than the Japanese yen, attracting widespread attention.
The currency crash was not only a tough economic test, but also exposed the vulnerability of Asian countries in the global economy.
The dollar has frequently risen to new highs against the Vietnamese dong. As of 17 points on Wednesday, the dollar reached an all-time high of 25,455 against the Vietnamese dong, up 0.06% on the day, according to the UK financial data. So far this year, the Vietnamese dong has lost about 5% of its cumulative value. With the fall of the dong to a record low, total international capital investment in Vietnam has reportedly fallen by nearly 30% since 2023, withdrawing more than petates from the country. As the Vietnamese dong falls, Vietnam's central bank has begun to defend its exchange rate, not only selling hundreds of millions of dollars to help stabilize the exchange rate, but also limiting capital liquidity by controlling foreign currency transactions.
Vietnam is facing a devaluation, like many Asian countries, in the face of high US interest rates, weaker expectations of a Fed rate cut and rising geopolitical tensions.
