Vietnam urges ‘strong measures’ to stabilise forex, gold

Thursday, 2 December 2010 01:01 - - {{hitsCtrl.values.hits}}

HANOI, (AFP) - Vietnam’s prime minister has urged “strong measures” to stabilise foreign exchange rates and gold prices after the dong slumped to a record low in the free market on Wednesday.

The central bank “must take strong measures to stabilise prices of gold and foreign currencies, and interest rates,” Prime Minister Nguyen Tan Dung said in a directive issued.

One US dollar traded at 21,500 dong, more than 13 percent above the official rate of 18,932 dong set by the State Bank of Vietnam.

With the dong under pressure and inflation refusing to drop below government targets, the State Bank last month raised key interest rates for the first time in a year.