# State Bank of Vietnam expands exchange rate trading band - Central Banking

> The State Bank of Vietnam widened the dong's daily trading band from 3% to 5% effective October 17, saying the move was made to cope with international market developments and US Federal Reserve tightening. The change allows the dong to fall further against a strong dollar.

- Date: 2022-10-17 · published 2022-10-17T12:00:00.000Z
- Category: macro · region Vietnam · magnitude medium
- Page: https://feedsoft.ai/events/39453-state-bank-of-vietnam-expands-exchange-rate-trading-band-central-banking
- Commodities: [Vietnamese Dong (VND per USD)](https://feedsoft.ai/c/USDVND.md)

## Why it matters

The wider band effectively devalues the dong, raising the local cost of dollar-priced feed imports into Vietnam and pressuring feed buyers' margins.

## Read by commodity

- USDVND: bullish ▲

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/reserves/foreign-exchange/7953404/state-bank-of-vietnam-expands-exchange-rate-trading-band

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.