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History of the Vietnamese dong

by Xchange Of America ~ July 23rd, 2014

The Vietnamese dong (Code VND) has been the official currency of the country of Vietnam since 1978. Because the currency has been devalued so much since 1978 it is issued in bills of 200, 1000, 5000, 10000, and higher. It previously was divided into lower denominations called hao and xu, but neither of these are used any longer. The word dong refers to the bronze coins that were used during the Vietnamese dynasties. There have been several commemorative dong coins that have been issued since 1986 but they are not used in circulation. After a period of time in which coins were not issued, the State Bank of Vietnam began issuing coins in December of 2003 starting in denominations of 200.

Economy grew after Cold War ended

Vietnam was and continues to this day to be a communist country. The U.S. placed embargoes on Vietnam during the Cold War that first affected North Vietnam in 1969 but was extended to the South in 1975. After the Cold War ended, foreign countries began investing heavily in Vietnam, as it was a new economy with tremendous growth potential. However the United States maintained sanctions against Vietnam, but it did not prevent countries like Great Britain, France and Australia from investing.

The Vietnamese dong was devalued due to pressure from the U.S.

The U.S. pressured the IMF to devalue the Vietnamese dong in order to encourage the use of the U.S. dollar in the country, but the devaluation actually ended up benefitting the economy in the long run as it increased foreign investment and eventually U.S. investment once the sanctions were lifted in 1994. The Vietnamese dong continued to be devalued through a series of progressive currency devaluations, and the collapse of the USSR allowed Vietnam more trading freedom with the West.

The Vietnamese economy is one of the fastest growing in the world

At the moment the Vietnamese economy is one of the fastest growing economies in the world. A substantial middle class has emerged that is about 35% of the population, and its natural resources are now being developed including oil and gas. Many national companies have begun opening franchises in Vietnam including McDonalds and Starbucks. Companies like Samsung have moved their factories into Vietnam, strengthening the economy and providing jobs which in turn increases the chance that the Vietnamese dong will increase in value in the near future. Contact Dinar Inc for more information about buying Vietnamese dong.

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