Vietnam devalues dong by 1%

[SA Hunter]

www.bangkokpost.com/news/asean/661364/vietnam-devalues-dong-by-1


HANOI -- Vietnam on Wednesday devalued its currency by 1% following the devaluation of the Chinese yuan and a possible US interest rate increase.



The central bank-set reference rate weakened to 21,890 dong to the US dollar and the trading band at which the dong could be traded above or below was widened to 3% from 2%, the State Bank of Vietnam said in a statement.



The move comes after the People's Bank of China strongly devalued the yuan last week and Vietnam's central bank doubled its trading band in response.



It said the latest move aims at ensuring stability for the dong and competitiveness of Vietnamese products.

[strop2]

This appears to be a good move. Vietnam has handled its money very well over the last few years.
It has stayed on top of petrol prices which has ensured inflation remains low.

[SA Hunter]

....... and then countries like Greece spend, borrow, spend, borrow more, default payments, then borrow to be able to pay the interest.
Much like the USA is doing!!!

One day the world bank will go "no more loans, now pay us back"

[strop2]

Most of the world banks are controlled by a handful of wealthy people. It's all about control and profit.
There are foreign banks in Vietnam but they are highly regulated to follow the Vietnam Government banking rules.

I did personal research into banking in Vietnam and looked at HSBC and Citibank interest rates for Term investments and they were much lower than Vietnamese Banks and had little to offer.
All banks must follow the Banking Rules in the country they operate in and therefore Banks (even Banks that are of the same HSBC brand name) are not affiliated with one another - all operate differently.

I like strong regulations that limit profit and stop poor people from borrowing blindly from banking institutions.

If people need money and do not qualify for bank loans, they can put their properties up against loans from the Vietnamese Government at a very cheap government rate. The loan is set for a period of time.

I have done Peer to Peer lending from 6% to 30% per year and people put their properties up as collateral, which I only take on if I know they can pay back - short term of 1 month to 1 year. Any profit I make goes to feeding poor people; no Welfare System in Vietnam which eats up Government funds, which is why Governments borrow money and get into debt.

And a land written document that is counter signed by the Police is legal.

A simple Banking system that works for everyone and doesn't place the country into massive debt!!!!