Bank of America Forecasts US Dollar to Reach 25,700 Vietnamese Dong by End of 2024

Bank of America forecasts the US dollar will exchange for 25,700 Vietnamese dong by 2024 as Vietnam aims to manage inflation and stabilize prices through monitoring and policy interventions.

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Ayesha Mumtaz
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Bank of America Forecasts US Dollar to Reach 25,700 Vietnamese Dong by End of 2024

Bank of America Forecasts US Dollar to Reach 25,700 Vietnamese Dong by End of 2024

Bank of America has released a forecast predicting that the US dollar will exchange for 25,700 Vietnamese dong by the end of 2024. This projection comes amid efforts by the Vietnamese government to manage inflation and ensure price stability in the country.

According to the Ministry of Finance, the average Consumer Price Index (CPI) in Vietnam is expected to increase by around 3.64% in 2024 compared to 2023. The government anticipates price increases for petroleum products, electricity, transportation services, and some agricultural commodities in the coming year.

To address these inflationary pressures, the Vietnamese government is closely monitoring market fluctuations to determine the suitable moment to implement price management policies. The goal is to control inflation within the target range of 4-4.5% for 2024.

The State Bank of Vietnam has also been instructed to manage gold products as part of the government's efforts to help stabilize prices. These proactive measures aim to ensure an adequate supply and demand balance for essential goods and services in the country.

Why this matters: The forecast by Bank of America and the Vietnamese government's inflation management efforts have significant implications for the country's economy and its citizens. The stability of the Vietnamese dong against major currencies like the US dollar is crucial for maintaining purchasing power and attracting foreign investment.

Bank of America's prediction of the US dollar exchanging for 25,700 Vietnamese dong by the end of 2024 reflects the extreme volatility observed in global currencies lately. In light of this forecast, the article highlights the importance of using currency converters and money transfer services that offer competitive rates and reliable, quick, and safe international money transfers, as opposed to traditional banks.

As the Vietnamese government continues to monitor price fluctuations and implement appropriate policies, it remains committed to controlling inflation within the target range of 4-4.5% in 2024. The State Bank's management of gold products is expected to contribute to the overall price stability in the country.

Key Takeaways

  • Bank of America forecasts USD/VND at 25,700 by end of 2024.
  • Vietnam expects 3.64% CPI increase in 2024 due to rising costs.
  • Vietnam closely monitors market to adjust prices, aims for 4-4.5% inflation.
  • Vietnam's central bank to manage gold products to stabilize prices.
  • Forecast highlights importance of using competitive currency conversion services.