The result of the UK’s EU referendum has caused great fluctuations in the exchange rates of many major currencies, but according to the Department of Debt Management and External Finance, these fluctuations do not have much influence on Vietnam’s public debt. It is estimated that the British pound has devaluated by 8% while the euro, US dollar and renminbi are seeing similar trends. Meanwhile, the Japanese Yen is appreciating. The British pound accounts for 2% of Vietnam’s public debt, so its devaluation could actually benefit Vietnam. The depreciation of the euro and US dollar will have similar effects. However, the rise of the Japanese Yen is increasing the country’s debt burden.
