Vietnam’s central bank changes FX policy after Reuters report

Vietnam’s central bank told Reuters earlier this week that it is cutting back on the frequency of its currency intervention operations to allow the Vietnamese dong to move in accordance with the market. The move comes a little more than a week after Reuters exclusively reported how Vietnam, after being branded a currency manipulator by U.S. Treasury in December, had adopted a novel strategy of buying dollars through bespoke derivatives that kept the deals temporarily off the books and came with a cancellation contract. The State Bank of Vietnam’s statement confirmed those details.