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Vietnam's central bank has announced its third devaluation of its currency the dong since November, effective today (Wednesday). The country said the 2.1 percent depreciation was in a bid to help control a rising trade deficit.
The moving band of three percent above and below the currency's set mid-point will remain unchanged. Vietnam estimated in late July that its trade deficit in the first seven months of 2010 had widened to 7.4 billion US dollars, nearly doubling the gap in the same period last year.
Analysts view this as surprising in terms of timing, and say it could add to inflationary pressures.