Vietnam’s Bonds, Dong Little Changed After Call for Stability

Vietnam’s bonds and the local currency were little changed this week after the government on Nov. 30 called for stability in foreign-exchange, gold and commodity markets.

Prime Minister Nguyen Tan Dung asked the central bank to stabilize the foreign-exchange and gold markets after the gap between official and black rates widened and the price of the precious metal surged. He also requested that ministries and relevant authorities control commodity prices in an attempt to curb inflation, which climbed to 11.09 percent in November from a year earlier, the fastest pace since March 2009.

The yield on the benchmark five-year bonds was unchanged at 11.39 percent today, from the end of last week, according to a daily fixing price from banks compiled by Bloomberg.

The dong was little changed at 19,499 per dollar as of 4:55 p.m. in Hanoi, from 19,498 on Nov. 26, according to prices from banks compiled by Bloomberg.

The currency traded between 21,310 and 21,420 per dollar at money changers in Ho Chi Minh City this afternoon, compared with between 21,260 and 21,320 at the end of last week, according to a telephone-information service run by state-owned Vietnam Posts & Telecommunications.

The State Bank of Vietnam set the dong’s daily reference rate at 18,932 to the dollar, unchanged since Aug. 18. The currency is allowed to fluctuate by as much as 3 percent on either side of that rate.

To contact the Bloomberg News staff on this story: Diep Ngoc Pham in Hanoi at dpham5@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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