Vietnamese Dong Gets Boost From Controls

Following up on yesterday's announcement of a coming ban on gold trading, the Vietnamese government has ordered firms to dump U.S. dollars on the market. The dong got a boost from greenbacks being sold as a result of the new controls being put in place.

Vietnam’s dong strengthened at banks and money changers after the central bank said dollar supply increased following an order for companies to sell more of the U.S. currency back to lenders.

Both the dollar sales and gold controls are designed to address the fall of the dong and to divert economic activity from what the authorities consider to be unproductive speculation.