Despite the drop of oil price, the collapse of China’s stock market and the fall in the Chinese Yuan, the new exchange rate mechanism has proved its effectiveness in stabilising Vietnam’s foreign currency exchange market.
The new exchange rate mechanism still needs improvements, but it has responded well to external stock and currency fluctuations. The policy is expected to play an important part in stabilising the foreign exchange market, when the US Federal Reserve System raises its interest rate and the yuan could be further devalued in the future.
