A History in Vietnam Exchange Rates
Date Changes to Exchange Rate Regime Dong/USD
Jan 1 1970 The North Viet Nam Dong (VND) became the monetary unit of the Democratic Republic of Viet Nam, replacing the Indochinese Piastre that was equal to 32 Dongs, thus creating a theoretical Official Rate of VND1120 per U.S. Dollar.
Jan 1 1970 Since the Dong depreciated in the previous years, the theoretical Official Rate has risen to VND3591 per U.S. Dollar by April 1958.
Jan 1 1970 A currency reform was decreed, and 1000 old Dongs were declared equal to one new Dong, establishing a new theoretical Official Rate of VND3.59 per U.S. Dollar
Jan 1 1970 Under the impact of the Soviet currency reform, Hanoi's (the Capital of Viet Nam) unit was aligned to the Ruble at an exchange value of 3.27 Dongs, corresponding to a theoretical Official Rate of VND2.94 per U.S. Dollar.
An effective Commercial Rate of VND3.60 per U.S. Dollar was established and linked to the Pound Sterling for foreign trade purposes.
Jan 1 1970 The Commercial Rate was devalued to VND3.75 per U.S. Dollar along with the Pound.
There was a Noncommercial Rate for the Ruble Area (Noncommercial Ruble Rate) at VND1.92 per Ruble, or VND1.73 per U.S. Dollar, and a Noncommercial Rate for Capitalistic currencies at a theoretical value of VND4.20 per U.S. Dollar.
Aug 15 1971 Following the floating of the U.S. Dollar, the Official Dong depreciated parallel with the American unit.
Dec 18 1971 After the devaluation of U.S. Dollar on December 18th, the Official Rate was realigned to VND2.71 per U.S. Dollar (based on an unchanged gold content).
The Commercial Rate (linked to Pound Sterling) was changed to VND3.31, and the Noncommercial Rate to VND3.87 per U.S. Dollar. The Noncommercial Ruble Rate remained VND1.92 per Ruble, but as a result of the new Ruble/Dollar parity, the rate was altered to VND1.58 per U.S. Dollar.
June 23 1972 With the floating of the Pound Sterling, the Commercial Rate for the Dong was abolished.
Feb 13 1973 Following the U.S. Dollar devaluation, Hanoi did not change the theoretical gold content of the Dong, thus realigning the Official Rate to VND2.44 per U.S. Dollar. The Noncommercial Dong was changed to VND3.48 per U.S. Dollar, and the Noncommercial Ruble Rate to the equivalent of VND1.43 per U.S. Dollar.
March 1973 A controlled, floating Effective Rate, linked to a basket of currencies, was established, with the Noncommercial Rate for the Capitalistic monies based on a 50% premium.
Dec 31 1974 2.900
April 30 1975 With the North Viet Nam conquest of South Viet Nam completed, the South Viet Nam Piastre (VN$) was kept as legal tender in the area. North Viet Nam Dongs as well as all other foreign currencies were removed from circulation.
Sept 22 1975 A currency reform was decreed for the conquered area, whereby 500 old South Viet Nam Piastre were exchanged for one new South Viet Nam Dong (SD) and issued by the Bank of Viet Nam, resulting in an Official Rate of SD1.51 per U.S. Dollar, which was announced on October 2nd
Dec 31 1975 2.900
Jan 16 1976 The new South Viet Nam Dong devalued to SD1.85 per U.S. Dollar.
July 2 1976 North and South Viet Nam were officially united under the name of the Socialist Republic of Viet Nam. The dual currency structure was continued, but separated at the demarcation line located at the cities of Hue-Da Nang. The exchange rate established between the North Viet Nam Dong and the South Viet Nam Dong was ND1=SD0.8, and was applicable only to the authorized trade transactions and travel between the two regions.
Sept 1976 A controlled, floating Effective Rate for the South Viet Nam Dong was established with an exchange value of SD2.130857=SDR1. A Premium Rate for Capitalistic monies was also created, based on a 25% bonus for remittances from abroad of foreign currencies.
Nov 30 1976 2.680
Dec 1976 Soviet personnel created an additional Noncommercial Rate for the exchange of U.S. Dollar banknotes.
Dec 31 1977 2.460
May 3 1978 A uniform currency, the Viet Nam Dong (D) was introduced, with an Official Rate of D2.66358=SDR1, equivalent to D2.17=US$1. The conversion rate for the North Viet Nam Dong and the South Viet Nam Dong into new currency was ND1=D1 and SD0.80=D1, respectively.
The State Bank of Viet Nam on the basis of the average rate of the respective currency vis-ÆÙj-vis quoted the SDR exchange rates of Dong for certain foreign currencies. All payments in convertible currencies were made at the Official Rate.
In practice, the exchange rate between the Dong and the U.S. Dollar had been maintained within relatively narrow margins, while the rate for the SDR had been left to fluctuate (A controlled, floating Effective Rate for the new Viet Nam Dong).
The 25% Premium Rate for the South Viet Nam Dong was abolished, while the Noncommercial Rate for the Capitalistic monies based on a 50% premium for the old North Viet Nam Dong was continued for the new Viet Nam Dong.
Dec 31 1979 2.190
Nov 5 1980 The Effective Rate for the new Viet Nam Dong was downgraded from D2.66358=SDR1 to D3.06459=SDR1. 2.390
July 6 1981 The Viet Nam Dong was cut to D10.37883=SDR1, resulting in an Effective Rate of D9.045 per U.S. Dollar.
At the same time, the Noncommercial Rate was devalued and split into three categories. A 20% premium was applied to the exchange of convertible currencies by foreign visitors, resulting in a rate of D10.85 per U.S. Dollar, while a premium of 30% was applied to inward transfers up to D5000 and 40% for amounts above D5000, resulting in rates of D11.76 and D12.66 per U.S. Dollar, respectively.
Aug 11 1981 A Dollar-A Certificate was created for the purchase of goods in special government shops.
Oct 1981 An Export Rate of D12 per U.S. Dollar was created for exchange for export proceeds of local corporations.
Viet Nam began to participate in the transferable values system since October 1st, the exchange rate for the Transferable Ruble had been fixed at D16.235=TR1
Nov 5 1982 The Dollar-A Certificate system ceased to operate.
Dec 31 1982 9.760
Sept 1 1983 The 30%-40% premium for inward remittances was abandoned and a Preferential Rate of D20=US$1 was applied to inward remittances from Vietnamese workers in the nonconvertible area, while a rate of D60 per U.S. Dollar governed those from convertible area.
Nonresident Vietnamese in convertible currency countries introduced a premium of 50% for inward remittances of convertible currencies to relatives
Dec 31 1983 10.550
1984 The rate applied to inward remittances from the convertible area was devalued from D60 to D100 per U.S. Dollar.
Dec 31 1984 11.960
May 1 1985 The preferential exchange rate applied to inward remittances and transfer from the convertible area was devalued from D100 to D150 per U.S. Dollar.
Sept 14 1985 The State Bank of Viet Nam (SBVN) was authorized to issue new Viet Nam Dong and to withdraw old Dong from circulation. The value of the new currency was set equal to 10 times of the old Dongs.
Sept 15 1985 The Effective Rate was abolished and a Basic (Official) Rate of D15 per U.S. Dollar was established, as against a rate of D12.06=US$ for the old Dong.
In addition, Commercial Rates existed, resulting from premiums on export earnings ranging from D35 to D50 per U.S. Dollar and from D30 to 100 per Ruble. There are also Noncommercial Rates of D20 per Ruble and D150 per U.S. Dollar for inward remittances from the nonconvertible area and convertible area, respectively.
Premium Rate established for export receipts (Commercial Rate) of Central Import-Export Corporation.
Dec 31 1985 15.000
Nov 1 1986 A premium of 20% applied to inward remittances from convertible area and to sales of convertible foreign exchange by tourists and by international organizations based in Viet Nam. The Basic (Official) Rate for other transactions maintained at D15 per U.S. Dollar. In the municipality of Ho Chi Minh City, the corresponding rate was D18 per U.S. Dollar.
For the nonconvertible area, a Noncommercial Rate was adjusted from D15 to D80 per U.S. Dollar primarily for inward remittances and tourism (invisible transactions). For the convertible area, a premium of 20% applied, the Noncommercial Rate was D96 per U.S. Dollar.
Dec 9 1986 In the municipality of Ho Chi Minh City, additional premiums were granted to inward remittances and to sales of foreign exchange to tourists, bringing the applicable exchange rate to D300 and D250 per U.S. Dollar, respectively.
Commercial Rates result from export premiums of from D285 to D435 per U.S. Dollar, while import profits were taxed from D85 to D285 per U.S. Dollar. Similar premiums and taxes applied to transactions with the convertible area.
1987 The exchange rate system underwent simplification of sorts. The Basic Rate was abolished, as were the export premiums and import profits taxes. In addition, no distinction was to be made between convertible and nonconvertible areas.
April 21 1987 The Noncommercial Rate for inward remittances was devalued from D96 to D396 per U.S. Dollar.
July 21 1987 The Noncommercial Rate for inward remittances was devalued from D396 to D504 per U.S. Dollar.
Oct 15 1987 The Commercial Rate for external trade transactions was adjusted from D18 to D225 per U.S. Dollar and the Transferable Ruble Rate was changed from D18 to D150=TR1.
Dec 1 1987 The exchange rate for noncommercial transactions (including the transactions by international organizations) was adjusted from D80 to D368 per U.S. Dollar.
The Clearing Ruble Rate was changed from D45 to D240 per Clearing Ruble. The 20% premium that had previously offered to tourists was abolished.
Feb 25 1988 The Noncommercial Rate for inward remittances was adjusted from D504 to D900 per U.S. Dollar.
Sept 15 1988 The Commercial Rate for external trade transactions was devaluated from D225 to D900 per U.S. Dollar. Thus unifying that exchange rate with the exchange rate for inward remittances.
Nov 10 1988 The Noncommercial Rate for all other invisibles transactions was changed from D368 to D2600 per U.S. Dollar.
The Commercial Rate was split, with D900 per U.S. Dollar governing external trade within the foreign exchange plan, while for external trade outside the plan and for those of local enterprises, a rate of D2600 per U.S. Dollar applied.
Dec 10 1988 The Commercial rate for all other invisibles and for external trade outside the foreign exchange plan and for local enterprises was subsequently devalued from D2600 to D2800 per U.S. Dollar.
Dec 26 1988 The Commercial Rate for all other invisibles and for external trade outside the foreign exchange plan and for local enterprises was devalued from D2800 to D3000 per U.S. Dollar.
Dec 30 1988 The official exchange rate used for noncommercial transactions was D3000 per U.S. Dollar, and the Clearing Ruble Rate was D1080 per one Clearing Ruble.
Jan 19 1989 The rate for all other invisibles and for external trade outside the plan and for local enterprises was cut by 9% to D3300 per U.S. Dollar.
Feb 17 1989 The rate for all other invisibles and for external trade outside the plan and for local enterprises was cut by 6.1% to D3500 per U.S. Dollar.
March 5 1989 The exchange rates for the Transferable Ruble were devaluated from D700 to D1465 per Ruble for machinery and equipment, and to D2000 per Ruble from D1100 per Ruble for most other trade transactions.
March 13 1989 The previous system of multiple exchange rates applied to various transactions was abolished. The rate structure was unified. The Commercial Dong and Noncommercial Dong were merged and becoming the Convertible Currency Rate (exchange rate for transactions with the convertible currency area) at D4500 per U.S. Dollar, a devaluation of 22.2%. The Convertible Currency Rate would govern all transactions with the convertible currency area and was to be adjusted at irregular intervals based on developments in the domestic price of gold, internal commodity prices and international prices, while maintaining a spread with the parallel market within a range of 10% to 20%
Commercial banks could set the exchange rate for their transactions at up to 5% above the Convertible Currency Rate, keeping a 2% spread between the buying and selling rates.
The Transferable Ruble Rate was devalued and split into two categories: for machinery and equipment D1465 per Transferable Ruble and for most other transactions D2000 per Transferable Ruble
June 5 1989 The Convertible Currency Rate appreciated from D4500 per U.S. Dollar to D4200.
June 22 1989 The Convertible Currency Rate appreciated from D4200 per U.S. Dollar to D3900.
July 6 1989 The exchange rates for Transferable Ruble were revalued to D1190 from D1465 for machinery and equipment, and to D1500 from D2000 for most other transactions.
Dec 18 1989 The Convertible Currency Rate was depreciated from D3900 per U.S. Dollar to D4300.
Dec 31 1989 4,300.00
1990 The Convertible Rate was adjusted to D6500 per U.S. Dollar by the end of the year.
Jan 1 1990 The exchange rate for the U.S. Dollar was D4300 per U.S. Dollar.
The exchange rate for Transferable Rubles (TR) for transaction with CMEA countries was adjusted from D1190 to D1400 per TR1 for machinery and equipment and from D1500 to D3430 per TR1 for most other trade transactions; the rate for most other trade transactions was an average of D1923 per TR1 for exports and D2370 per TR1 for imports.
Dec 31 1990 The system of settlements in Transferable Rubles with the members of the CMEA through the International Bank for Economic Cooperation was abolished and was replaced by a system of settlements in convertible currencies
The Transferable Ruble Rate was terminated and the Convertible Currency Rate became the Effective Rate at D6500 per U.S. Dollar, governing practically all transactions except the Clearing Varieties.
Jan 1 1991 During 1990, the official exchange rate in term of the U.S. Dollar was adjusted 5 times, and on 1 January 1991, the official exchange rate was D7000 per U.S. Dollar.
Aug 29 1991 During 1991, the Effective Rate of Dong was adjusted 9 times from D6500 per U.S. Dollar on January 1st to D8300 per U.S. Dollar on August 29th.
Aug 30 1991 In August, a new foreign exchange centre was established in Ho Chi Minh City. (FEER)
Foreign exchange (only U.S. Dollar) was to be auctioned to banks, trade organization and to economic entities needing foreign exchange.
The final (closing) rate at each trade session was the Auction Fixing Rate and was to be applicable to all transactions. All the commercial banks were required to buy at this rate and sell at a rate within a maximum margin of 0.5% of the fixing rate.
Nov 1991 In November, another foreign exchange centre was established in Hanoi.
Dec 31 1991 11,900.00
Oct 21 1992 The daily depreciation rate of the maximum selling rate was increased from Mex$0.20 to Mex$0.40 per U.S. Dollar, while the minimum buying rate was to be held constant until the end of December 1993.
Dec 31 1992 An Official Rate of D9200 per U.S. Dollar existed at the end of 1992 for external aid valuation by the government.
July 1 1993 An official exchange rate, which had been used only for the valuation of external aid, was abolished.
Oct 14 1994 The interbank foreign exchange market began operation, permitting spot and forward transactions in 6 currencies. Trading might take place within trading ranges stipulated by the SBVN.
March 1 1997 The authorities widened the fluctuation-trading band for the Dong in the interbank market to 5% from 1%.
Oct 14 1997 The authorities widened the fluctuation-trading band for the Dong in the interbank market to 10% from 5%.
Feb 16 1998 The SBVN depreciated the official midpoint rate of the Dong against the U.S. Dollar by 5.6% to D11800 per U.S. Dollar.
Aug 6 1998 The general director or directors of credit institutions were allowed to fix the spot buying and selling rates between the Dong and foreign currencies. With respect to U.S. Dollar, the buying or selling rate fixed by such institutions must be within 0.1% of the average actual transaction rate in interbank foreign currency market of the previous transaction day.
Aug 7 1998 The SBVN devalued the Dong's Central Rate by 10%. The Central Bank abolished the upper limit of the exchange rate band and established a "one-sided band" of 7%, instead of the previous band of plus and minus 10%.
Feb 25 1999 The SBVN quoted as Official Rate the daily average exchange rates of the interbank market of the previous business day. Based on this exchange rate, commercial banks set their own rate within a band of plus and minus 0.1%. Thus, the exchange rate system was reclassified as a crawling peg.
Pegged Exchange Rate within Horizontal Banks (Jan 1999 - Dec. 2001); Managed Floating with No Pre-announced Path for the Exchange Rate (Dec. 2001 - Present)