Flexible management of foreign exchange rates to curb inflation and boost economic growth

Abstract

  The process of Vietnam’s openness and international integration requires flexible foreign exchange rate policy and adjustment to a changing domestic and international environment.

    Foreign exchange rate policy in the past few years has left a positive impact on the competitive edge for Vietnamese commodities.

    However the foreign exchange rate policy still leaves much to be desired. In order to play its role in curbing inflation, boosting exports, end economic growth,  foreign exchange rate policy needs to be further improved, which include:

- Implementing flexible management of foreign exchange rates under the state regulation

- Applying a flexible management of foreign exchange rates with Vietnamese dong as a key currency

-  A reasonable devaluation of Vietnamese dong