“Monetary policy will continue to follow an easing path, aiming to reduce interest rates, which will make it difficult to relieve pressure on the exchange rate. The most effective approach is to control the money supply (M2), using technical tools to channel cash flow into productive absorption channels in the economy,” said Dr. Huynh Thanh Dien of Nguyen Tat Thanh University in an interview with The Saigon Times. Businesses hit by exchange rate volatility U.S. trade policy under President Donald Trump, combined with the volatility of the U.S. dollar, weakened the Vietnamese dong in the first half of 2025. On top of that, expansionary monetary policy aimed at achieving GDP growth of 8.3–8.5% in 2025 further increased pressure on the exchange rate. In a newly published report, Associate Professor Dr. Vu Sy Cuong of the Academy of Finance estimated that the dong has depreciated by approximately 3.9% against the U.S. dollar since the beginning of the year. Compared to the end of June 2025, the USD/VND exchange rate has increased by 0.9%, and the State Bank of Vietnam (SBV) has raised the central reference rate to VND25,273 per dollar. According to Dr. Cuong, a weaker domestic currency also raises import […]
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