Exchange rate adjustment not affect inflation much: Le Duc Thuy

The recent 9.3% dong devaluation will not significantly affect the country’s inflation

The recent 9.3% dong devaluation will not significantly affect the country’s inflation, the online newspaper VnExpress quoted Le Duc Thuy, Chairman of the National Committee for Financial Supervision as saying on February 2.

The exchange rate adjustment of 1% regularly affects inflation between 0.15%-0.2%, but now it is unlikely, Thuy said.

Thuy affirmed that current exchange rate existed for a long time and it was reflected on the prices of goods. Therefore, the recent adjustment of Vietnam’s central bank will not affect much on the country’s inflation.

Dr. Le Tuan Anh, Head of Research of Dragon Capital, agreed that Vietnam inflation will be not affected much by the recent devaluation of domestic currency.

Anh forecasts that Vietnam inflation will reach a peak of 12-13% in July and August, then, slow down to 10% at the end of this year. – Stoxplus.com

Tags: exchange rates