# Central bank maintains flexible forex regime

> Vietnam's central bank is keeping a flexible forex regime and adjusting the dong's reference rate daily. The trade deficit for the first four months of 2017 was about US$2.8 billion, and the dong has lost only 1.1% against the dollar this year. Analysts expect the US Federal Reserve to raise rates in June, which adds downward pressure on the dong.

- Date: 2017-05-29 · published 2017-05-29T12:00:00.000Z
- Category: macro · region Vietnam · magnitude low
- Page: https://feedsoft.ai/events/71293-central-bank-maintains-flexible-forex-regime
- Commodities: [Vietnamese Dong (VND per USD)](https://feedsoft.ai/c/USDVND.md)

## Why it matters

Expected US rate hikes and a strong dollar could weaken the dong, raising the local cost of imported feed ingredients. The central bank's managed approach limits how fast that pressure feeds through.

## Read by commodity

- USDVND: neutral

## Sources

- vietnamnews.vn: https://vietnamnews.vn/economy/business-beat/377260/central-bank-maintains-flexible-forex-regime.html

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