# Rising trade deficit puts pressure on exchange rate

> The National Financial Supervisory Commission forecasts the dong will face its greatest pressure in 2017 from foreign currency demand, driven by a rising trade deficit expected to reach 3.5% of export turnover. Strong foreign investment inflows have so far offset this pressure. The commission also warned that a sharp Chinese yuan depreciation would hurt Vietnam.

- Date: 2017-05-15 · published 2017-05-15T12:00:00.000Z
- Category: macro · region Vietnam · magnitude low
- Page: https://feedsoft.ai/events/71294-rising-trade-deficit-puts-pressure-on-exchange-rate
- Commodities: [Vietnamese Dong (VND per USD)](https://feedsoft.ai/c/USDVND.md)

## Why it matters

Pressure on the dong raises the dollar cost of imported feed inputs such as corn, soybean meal and DDGS. A weaker yuan could also cut Chinese demand for Vietnamese exports.

## Read by commodity

- USDVND: bullish ▲

## Sources

- en.vietnamplus.vn: https://en.vietnamplus.vn/rising-trade-deficit-puts-pressure-on-exchange-rate-post111739.vnp

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